One Important Aim of Releasing AAS 24 in 1991 and Amendments

question 31

Multiple Choice

One important aim of releasing AAS 24 in 1991 and amendments made to The Corporations Law in the same year was to:

• A) Require parent entities to consolidate companies that they controlled into one set of financial statements for the first time.
• B) Change the treatment of minority interests to be reflected in the accounts as a liability.
• C) Prevent companies from keeping debt off the balance sheet by interposing partnerships or trusts in the group structure.
• D) Require the consolidation of the cash-flow statement as well as the balance sheet and income statement.
• E) None of the given answers.

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Definitions:

Diminishing Marginal Returns

A principle stating that as more of a production input is added, holding all others constant, the resulting additional output will eventually decrease.

Range

The difference between the highest and lowest values in a data set, often used to measure variability.

Average Product

The output per unit of input, typically calculated for labor or capital in the production process.

Units of Labor

Measurements that represent the amount of work or effort by labor, typically used in the context of production processes.