In Australia,according to SAC 2 'Objective of General-Purpose Financial Reporting',the

question 17

Multiple Choice

In Australia,according to SAC 2 'Objective of General-Purpose Financial Reporting',the primary user groups(s) of general purpose financial reports are:

• A) Resource providers
• B) Recipients of goods and services
• C) Parties performing a review or oversight function
• D) All of the given options are correct.

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Definitions:

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.

Quick Ratio

A financial ratio that measures a company’s ability to meet its short-term obligations with its most liquid assets.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the net income or loss.

Return On Stockholders' Equity

A measure of financial performance calculated by dividing net income by average shareholders' equity, showing how effectively management uses equity from shareholders to generate profit.