Which of the Following Is Not a Characteristic Used to Judge

question 11

Multiple Choice

Which of the following is not a characteristic used to judge whether an entity is a reporting entity that should prepare general purpose financial reports?

• A)Whether the entity has economic or political importance.
• B)The size or indebtedness of the entity.
• C)The structure of the entity, e.g. whether it is a sole trader or a company.
• D)Whether ownership and management are separate.

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Definitions:

Expectation

A belief about what will happen in the future, often based on experience or hypothetical scenarios.

Levels

Different stages or degrees of magnitude, intensity, or depth in a hierarchy or process.

Response

An action or change in behavior that occurs as a result of a stimulus or situation.

Stress

A response of the body to demands or threats, characterized by physical, emotional, and mental reactions that can affect overall wellbeing.