Concise Financial Reports

question 21

Multiple Choice

Concise financial reports:

• A) must be drawn up in accordance with AASB's
• B) must achieve consistency with the changes in terminology contained in AASB 101
• C) must include a statement of comprehensive income, a statement of financial position, a statement of cash flows and a statement of changes in equity
• D) all of the above

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Definitions:

Decision Making

Choosing among alternative actions; a component inherent in the other management processes of planning, directing, controlling, and improving.

Negotiated Price Approach

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

Transfer Price

The price at which goods and services are sold between divisions within the same company.

Responsibility Centers

Units or departments within an organization, each accountable for its own activities and financial results.