The IASB and the AASB Have Chosen to Adopt the ________

question 55

Multiple Choice

The IASB and the AASB have chosen to adopt the ________ concept of consolidation, mainly because of the conceptual framework decision that financial statements are prepared for a wide range of users.

• A)cost
• B)entity
• C)parent entity
• D)proprietary

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Definitions:

Financial Statements

Comprehensive reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Total Debits

The sum of all debit entries recorded in the accounting ledger, reflecting assets or expenses that have increased.

Total Credits

The sum of all credit entries recorded in a financial account, representing increases in assets or decreases in liabilities.

Balance Sheet Columns

The sections in a balance sheet that categorize assets, liabilities, and equity accounts to display the financial position of a business at a certain point in time.