AASB 8/IFRS 8 Operating Segments Applies To

question 10

Multiple Choice

AASB 8/IFRS 8 Operating Segments applies to:
I. listed entities.
II. public companies.
III. entities in the process of listing.
IV. any entity who voluntarily chooses to apply it.

• A) I, II and III only.
• B) II, III and IV only.
• C) I, II and IV only.
• D) I, III and IV only.

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Definitions:

Order Costs

Expenses related to placing and receiving orders for inventory, including costs associated with ordering, shipping, and handling.

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from accounts receivable.

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.