When Accounting for the Issue of Shares, Placing Application Monies

question 65

Multiple Choice

When accounting for the issue of shares, placing application monies in a separate cash trust account is required:

• A) to meet the obligation by the company to remit the funds to ASIC.
• B) because the bank requires it.
• C) before the share issue is finalised as the money does not belong to the company and some or all of it may need to be refunded.
• D) it is administratively easier for the company if the money is placed in a separate account.

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