Which of the Following Is Not One of the Three

question 7

Multiple Choice

Which of the following is not one of the three elements of control according to AASB 10/IFRS 10 Consolidated Financial Statements?

• A) The ability to use power over the investee to affect the amount of the investor's returns.
• B) Exposure, or rights, to variable returns from involvement with the investee.
• C) Dominating the decision making of the investee.
• D) Power over the investee.

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Definitions:

Merchandise Purchases

Transactions where a business acquires goods to be sold later, often at a profit.

Retained Earnings

Accumulated net income not distributed to shareholders and reinvested in the company.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made periodically, usually at the end of a financial reporting period, as opposed to continuously.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead expenses.