In Reference to Worldwide Competition Laws, Each of the Following

question 164

Multiple Choice

In reference to worldwide competition laws, each of the following are fundamentally prohibited or highly suspicious among regulators across almost all countries except which one?

• A)dominant firms
• B)creation of cartels
• C)charging unfairly high prices
• D)monopolies

Appreciate the importance of determining the functional currency based on economic indicators and its impact on financial reporting.

Understand the criteria and processes for translating non-monetary items measured at historical cost or using the fair value method.

Recognize the requirement for disclosures relating to foreign currency translation in financial reports.

Interpret and apply AASB 121 The Effects of Changes in Foreign Exchange Rates in practical scenarios.

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Definitions:

Statement of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Net Increase

The difference between the current figure and the previous figure when the current figure is larger.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity, including issuing shares, repaying loans, or paying dividends.

Operating Activities

Business activities directly related to the production and delivery of goods and services, generating the majority of a company's revenue and cash flows.