Which Statement Is Incorrect? AASB Standards Apply by Force of Law

question 7

Multiple Choice

Which statement is incorrect? AASB standards apply by force of law to:

• A)all entities regulated by the Corporations Act
• B)entities required to comply with AASB accounting standards by other legislation
• C)entities required to comply with AASB accounting standards by ministerial directive
• D)all of the above

---

Definitions:

Revenue Accounts

Accounts used to record the income generated from a company’s core operating activities.

Expense Accounts

These are ledgers that track the costs incurred by a business during its operations, excluding the purchase of inventory.

Income Summary Account

A temporary ledger account used to transfer the balances of all revenue and expense accounts at the end of an accounting period to determine the net income or loss.

Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.