Scenario 16-1 Suppose the Following Are the Sales for All of the of the Firms

question 130

Multiple Choice

Scenario 16-1
Suppose the following are the sales for all of the firms in two different industries.
-Refer to Scenario 16-1. What are the concentration ratios for these industries?

• A)Industry A: 22%, Industry B: 26%
• B)Industry A: 41%, Industry B: 47%.
• C)Industry A: 68%, Industry B: 79%
• D)Industry A: 100%, Industry B: 100%.

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Definitions:

AASB 12/IFRS 12

Refers to the accounting standard related to the disclosure of interests in other entities, requiring information about subsidiaries, joint arrangements, and associates.

Non-controlling Interests

The share of ownership in a subsidiary that is not owned, directly or indirectly, by the parent company.

Significant Restrictions

Limitations or constraints that significantly impact the use, transfer, or disposal of assets or resources.

AASB 3

An accounting standard provided by the Australian Accounting Standards Board relating to Business Combinations, guiding the accounting treatment for all phases of the acquisition process.