Which of the Following Is a Correct Statement with Respect

question 27

Multiple Choice

Which of the following is a correct statement with respect to a listed company?

• A) The Australian Securities and Investments Commission does not have to be given notice of the removal of an auditor.
• B) An auditor of a public company does not have to have the approval of the Australian Securities and Investments Commission to resign.
• C) An auditor of a public company must be appointed within three months of incorporation.
• D) Once the auditor is re-appointed at the first annual general meeting, it is not necessary for the auditor to be re-appointed each following year.

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Definitions:

LIFO Method

An inventory valuation method that assumes the last items added to inventory are the first ones to be sold (Last In, First Out).

Periodic Inventory System

An inventory valuation method where the ending inventory and cost of goods sold are determined at the end of the accounting period.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific category, supplementing the general ledger.

Consignment

An arrangement where goods are left with a third party to sell, but ownership remains with the supplier until the goods are sold.