In Relation to 'Retained Earnings', AASB 101 Mandates the Following

question 17

Multiple Choice

In relation to 'retained earnings', AASB 101 mandates the following disclosures:
I. The beginning balance.
II. The balance at reporting date.
III. Any changes during the reporting period.
IV. The related tax adjustments in respect to any changes during the period.

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

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Definitions:

Materials Purchases

The total cost of raw materials bought by a company for use in its manufacturing process during a specific period.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Production Budget

A financial plan that outlines the expected production levels of a company based on projected sales, inventory policies, and capacity constraints.

Cash Collections

The total amount of money received from customers or clients for goods or services provided.