A Government Entity Controls Both James Limited and Claire Limited

question 12

Multiple Choice

A government entity controls both James Limited and Claire Limited. Collum Limited and Dougall Limited are the subsidiaries of James Limited. Frank Randall is the managing director of James Limited. James Limited can apply the partial exemption disclosures in paragraph 25 of AASB 124 to transactions with the following parties, except for:

• A) Frank Randall.
• B) Claire Limited.
• C) Collum Limited.
• D) the government entity.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Materials

Raw inputs or components used in the manufacturing or production process to create a final product.

Equivalent Unit

A concept used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Weighted-Average Method

An approach to inventory valuation where the cost of goods sold and ending inventory figures are derived from the average cost of all units on sale during that interval.