Which of the Following Statements Is Incorrect

question 25

Multiple Choice

Which of the following statements is incorrect?

• A)The relevant accounting standard applied in translating financial statements into another currency is AASB 121 The Effects of Changes in Foreign Exchange Rates.
• B)The financial statements of an entity may be recorded in a foreign currency and translated into Australian dollars for the purpose of combining those statements with the financial statements of a related Australian company.
• C)Not many companies in Australia have operations in both Australia and overseas locations.
• D)The financial statements of an Australian company may be prepared in Australian dollars and translated into a foreign currency for presentation purposes.

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Definitions:

Accounting Information

The financial data and records about a company's transactions, financial performance, and condition, used to make business decisions, prepare financial statements, and comply with financial reporting standards.

Employees

Individuals hired by a company to perform tasks in exchange for compensation, typically through wages or salaries.

Statement Of Owner's Equity

A financial statement showing the changes in the equity of a company during a specific period, due to various factors like profits and losses.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest of the owners.