Which of the Following Statements Is Incorrect

question 11

Multiple Choice

Which of the following statements is incorrect?

• A) The relevant accounting standard applied in translating financial statements into another currency is AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates.
• B) The financial statements of an entity may be recorded in a foreign currency and translated into Australian dollars for the purpose of combining those statements with the financial statements of a related Australian company.
• C) Not many companies in Australia have operations in both Australia and overseas locations.
• D) The financial statements of an Australian company may be prepared in Australian dollars and translated into a foreign currency for presentation purposes.

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Definitions:

Assets

Economic resources owned by an individual or business, capable of being converted into cash or used to generate revenue.

Less Restrictive Financing

Financing options that offer more flexible terms and conditions, often resulting in higher levels of debt that can be used by a company for expansion or other purposes.

Leasing

An agreement where one party pays another for the use of an asset over a set period, often used for equipment, vehicles, or property, without provided ownership.

Building

A structure with a roof and walls, such as a house or factory, constructed as a dwelling or for a business or other use.