Which of the Following Is a Correct Statement with Respect

question 10

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)The Australian Securities and Investments Commission will only allow the auditor to resign other than at the annual general meeting in exceptional circumstances.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Inventories

Assets held for sale in the ordinary course of business, or goods that will be used or consumed in the production of goods to be sold.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.