On What Criteria Is a 'Reporting Entity',as Defined in SAC

question 20

Multiple Choice

On what criteria is a 'reporting entity',as defined in SAC 1,dependent?

• A) Whether there are users that are dependent on the reports to make or evaluate resource decisions
• B) Professional judgment providing some guidelines to help make a decision
• C) Whether there are users that are dependent on the reports to make or evaluate resource decisions, and professional judgement provides some guidelines to help make a decision
• D) The Corporations Law based on measures of gross revenue, dollar value of assets and the number of employees

---

Definitions:

Raw Materials

The basic substances from which products are made, such as metals, textiles, or grains.

Finished Goods And Services

Products or services that have completed the manufacturing process and are ready to be sold to the end consumer.

Business Firm

An organization engaged in commercial, industrial, or professional activities with the aim of generating profits.

Form Utility

Conversion of raw materials, component parts, and other inputs into finished goods and services.