Accounting Standard AASB 101 Requires That a Summary of Accounting

question 57

Multiple Choice

Accounting standard AASB 101 requires that a summary of accounting policies should be included:

• A)on the first page of the annual report.
• B)in a schedule attached to the annual report.
• C)in the initial section of the notes to the financial statements.
• D)as a footnote to the balance sheet.

---

Definitions:

Marginal Cost

The financial impact of producing an extra unit of a product or service.

Perfectly Competitive Firms

Firms that operate in a market where no single buyer or seller has the power to influence the price of the product, and where the product offered is homogeneous, with many sellers and buyers.

AVC

Average Variable Cost; the total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Minimize Losses

A strategy or approach aimed at reducing the amount of money or resources that are being lost or wasted.