Which of the Following Requirements Does NOT Apply to a Company

question 8

Multiple Choice

Which of the following requirements does NOT apply to a company seeking a public listing on the ASX?

• A) The entity must satisfy either the profit test or the net tangible assets test.
• B) The company must have at least 500 holders of a parcel of main class securities valued at least $2000.
• C) The company must lodge a prospectus with the ASX on an annual basis.
• D) The company must have a structure and operation appropriate for a listed entity.

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Definitions:

Operating Cycle

The time it takes for a business to purchase or produce inventory, sell the product, and collect cash from the sale.

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries have been made, used to check the equality of debits and credits and prepare for the next accounting period.

Owner's Equity Statement Accounts

Reports detailing changes in the owner's equity account for a period, showing contributions, withdrawals, and the period's profit or loss.

Balance Sheet Accounts

Balance Sheet Accounts are the accounts that reflect the assets, liabilities, and equity of a company as recorded on the balance sheet, giving a snapshot of financial health at a specific point in time.