AASB 102 Provides That Not-For-Profit Entities

question 1

Multiple Choice

AASB 102 provides that not-for-profit entities:

• A) Must value their assets at the lower of cost or net realisable value to allow reports to be compared.
• B) Should only report inventories at cost for simplicity.
• C) Should value their assets at either cost or current replacement cost, whichever is more beneficial.
• D) Will record the inventories at the lower of cost or current replacement cost.
• E) None of the given answers.

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Definitions:

General Journal

A primary accounting record where financial transactions are initially recorded in chronological order.

Ledger

A comprehensive collection of a company's accounts, including assets, liabilities, equity, revenue, and expenses, used for tracking financial transactions.

Debit Side

The left-hand side of a ledger account, recording increases in assets or expenses and decreases in liabilities or equity.

Account

A record in the general ledger that is used to collect and store debit and credit transactions.