Accounting and Auditing - Financial Accounting Questions

Cr Cash trust;

Dr Cash;

Dr Application.

Cr Application;

receive a certain number of shares in a company at no cost;

buy or sell a certain number of shares in the company by a specific date and at a stipulated price;

not pay the unpaid balance on shares they own when that balance is called in by the company;

buy or sell a certain number of shares in the company at fair value by a specific date.

Unlike shares, debentures may be issued at a premium or discount.

Under the Act, debentures exclude unsecured notes and convertible notes.

Debentures usually represent secured, long-term liabilities on which interest must be paid.

The issue of debentures must be preceded by the issue of a disclosure document.

only be paid to shareholders once a year;

only be paid out of the profits of a company;

be declared and paid to shareholders irrespective of whether a company has accumulated losses;

only be paid if approved by the Australian Securities and Investments Commission.