If a Shareholder in a Public Company Purchases Shares on the Australian

question 49

Multiple Choice

If a shareholder in a public company purchases shares on the Australian Securities Exchange, the capital of the company will:

• A)decrease by the amount obtained for the shares.
• B)remain the same.
• C)decrease by the fair value of the share.
• D)increase by the amount obtained for the shares.

---

Definitions:

Cumulative Inflation

The total change in the price level of goods and services in an economy over a set period of time, typically resulting in a decrease in purchasing power of the currency.

Temporal Method

An accounting method used to translate foreign currency financial statements into the reporting currency of a parent company, focusing on the timing of transactions.

Ending Inventory

The total value of all inventory a company has in stock at the end of an accounting period.

Average Cost

An inventory costing method where the cost of goods sold and ending inventory is determined by averaging the cost of all purchases.