Which Statement Concerning AASB1053 Is True

question 25

Multiple Choice

Which statement concerning AASB1053 is true?

• A) All entities would be classified as Tier 1, Tier 2 or Tier 3.
• B) It is sometimes referred to as the reduced disclosure requirements standard.
• C) Entities classed as Tier 3 will have their financial disclosure requirements increased.
• D) The standard does not apply to not-for-profit private sector entities and most public sector entities.

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Total Assets

The sum of all current and non-current assets owned by a company, indicating its overall value.

Sales/Total Assets

A financial ratio that measures how efficiently a company is using its assets to generate sales.

Pretax Profit

Earnings before tax, indicating the profitability of a business before accounting for tax obligations.