Which of the Following Is the Purpose of China's "Accounting

question 56

Multiple Choice

Which of the following is the purpose of China's "Accounting System for Business Enterprises" issued in 2001 to supersede its "Basic Standard of Accounting for Business Enterprises?"

• A)Increase harmonization of accounting standards.
• B)Improve comparability of accounting statements.
• C)Make financial reporting distinct from taxation.
• D)All of the above

Understand the reporting requirements for a statement of cash flows as per AASB 107.

Identify and classify various types of cash flows: operating, investing, and financing activities.

Determine the effects of specific transactions on cash flow statements, including acquisitions and disposals.

Calculate cash flows from operating, investing, and financing activities using given data.

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Definitions:

Marginal Revenue

The increase in earnings resulting from the sale of one extra good or service.

Economic Profit

the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.

Marginal Cost

The addition to total cost from producing one additional unit of a product.

Perfectly Competitive Firm

A perfectly competitive firm operates in a market where there are many buyers and sellers, the product is homogenous, and there is free entry and exit from the market.