The Term "Small and Medium-Sized" Entities in the IASB's Pronouncement

question 28

Multiple Choice

The term "small and medium-sized" entities in the IASB's pronouncement on IFRS for Small and Medium-sized Entities (SMEs) defines SMEs as:

• A) Those entities with public accountability that publish general purpose financial statements
• B) Those entities without public accountability that publish general purpose financial statements
• C) Those entities that use IFRS in their general purpose financial statements
• D) Those entities that use U.S. GAAP in their general purpose financial statements

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Definitions:

Ideas

Mental concepts or thoughts that arise from the mind or intellectual processes.

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another, transmitted through languages, material objects, ritual, institutions, and art.

Legitimacy

The acceptance of an authority, often a governing law or régime, as being rightful and justified.

Power

The ability to influence or control the behavior of people, the outcome of events, or the distribution of resources within a society.