Under AASB 133, If an Entity Presents Both Consolidated and Separate

question 10

Multiple Choice

Under AASB 133, if an entity presents both consolidated and separate financial statements, the necessary disclosures need only be determined on the basis of:

• A) parent entity only.
• B) subsidiary entities only.
• C) consolidated information.
• D) the entity has choice of either parent entity or consolidation.

Identify the conditions under which a monopolistically competitive firm can earn zero, positive, or negative profits.

Understand the concept of imperfect competition and its variants, including monopolistic competition and oligopoly.

Understand the concept of product-variety and business-stealing externalities in monopolistic competition.

Recognize the characteristics of long-run equilibrium in monopolistically competitive markets, including price, average total cost, and marginal cost relations.

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Definitions:

Risk of Loss

The exposure to potential financial loss in a transaction, often determining who bears the responsibility if goods are damaged or lost.

Carrier

An entity or company that undertakes to transport goods or people for a fee, such as a shipping line, airline, or telecommunications provider.

Shipment Contract

A contract that specifies the seller's responsibility is fulfilled once goods are handed over for transportation, shifting risk to the buyer.

Risk of Loss

The legal responsibility for the damage, destruction, or loss of property, which may shift from the seller to the buyer at a specified point in the transaction.