When Accounting for the Issue of Shares Placing Application Monies

question 40

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

---

Definitions:

Clayton Act

An amendment passed to the U.S. antitrust laws to promote competition among enterprises and protect consumers from unfair business practices.

Clayton Act

A United States antitrust law, passed in 1914, aiming to prevent exclusive sales contracts, corporate mergers, and other practices that restrict competition.

Celler-Kefauver Act

A United States antitrust law passed in 1950, aimed at preventing anti-competitive mergers by closing loopholes relating to asset purchases.

Sherman Act

is a foundational antitrust law in the United States aimed at preserving competition by prohibiting monopolies, cartels, and other forms of anticompetitive practices.