AASB 128 Notes That in the Absence of Evidence to the Contrary,significant

question 22

Multiple Choice

AASB 128 notes that in the absence of evidence to the contrary,significant influence would normally exist where an investor holds:

• A) directly 20 per cent or more of the shares of another entity.
• B) directly 20 per cent or less of the voting power of another entity.
• C) directly 20 per cent or more of the total equity and debt on issue of another entity.
• D) directly, or indirectly, 20 per cent or more of the shares of another entity.
• E) None of the given answers.

---

Definitions:

Dividends Per Share

The total dividends declared by a company for each share of its stock.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated by dividing net credit sales by average accounts receivable.

Days' Sales In Receivables

A financial ratio that measures the average number of days it takes for a company to collect payments from its credit sales.

Price-Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating investor expectations of growth and profitability.