The Definition of a Reporting Entity in SAC 1 Requires

question 20

Multiple Choice

The definition of a reporting entity in SAC 1 requires:

• A) the existence of external users.
• B) the existence of dependant users.
• C) a reasonable expectation of external users.
• D) a reasonable expectation of users reliant on the entity's general purpose financial report.

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Definitions:

Financial Analysis

The evaluation of a business, project, budget, or other finance-related entity to determine its performance, stability, and profitability.

Percentage Increase

A measure of how much a quantity has grown relative to its original value, expressed as a percentage.

Sales Data

Information that represents the quantity sold and revenues generated from goods or services over a certain period of time.

Vertical Analysis

A financial analysis method that lists each account on the financial statements as a percentage of a base number.