Which of the Following Is Not a Characteristic Used to Judge

question 65

Multiple Choice

Which of the following is not a characteristic used to judge whether an entity is a reporting entity that should prepare general purpose financial reports?

• A)The structure of the entity,e.g.whether it is a sole trader or a company
• B)Whether ownership and management are separate
• C)Whether the entity has economic or political importance
• D)The size or indebtedness of the entity

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Definitions:

Distinctiveness

the quality or condition of being clearly different or unique, setting someone or something apart from others.

Kelley's Covariation Model

A psychological theory that explains how individuals attribute cause to events based on the consistency, distinctiveness, and consensus of the event.

Consensus

General agreement among a group or community, often reached through collective deliberation.

External Factor

An influence originating outside an individual or system that significantly affects outcomes or decisions within it.