According to AASB 101, a Required Format for the Presentation

question 14

Multiple Choice

According to AASB 101, a required format for the presentation of the statement of profit or loss and other comprehensive income is:

• A) prescribed by the standard.
• B) not prescribed but guidance is provided in the standard for a suitable format.
• C) not prescribed and no guidance is provided in the standard for a suitable format.
• D) prescribed by the standard and further details are found in the Corporations Act.

---

Definitions:

Output Decreasing

A situation where the quantity of goods or services produced by an economy or firm is reducing over time.

Marginal Revenue

The additional income earned by selling one more unit of a good or service, crucial for determining optimal output levels.

Total Costs

The sum of all expenses associated with the production and delivery of goods or services, encompassing both fixed and variable costs.

Average Total Cost

This refers to the total cost of production divided by the number of units produced, inclusive of fixed and variable costs.