The Accounting Standard That Specifies the Correct Presentation of Financial

question 29

Multiple Choice

The accounting standard that specifies the correct presentation of financial statements is:

• A) AASB 1004.
• B) AASB 1039.
• C) IAS 1/AASB 101.
• D) IAS 20/AASB 120.

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Definitions:

Limited Liability

Status that specifies that an individual’s liability will not go beyond his or her original investment.

Personally Liable

The responsibility of an individual to pay a debt or fulfill an obligation from their own assets, not just the assets of a business or an entity they represent.

Capital Investment

Funds invested in a business venture with the expectation of generating income or profit.

Close Corporation

A corporation whose shares of stock and managerial control are closely held by fewer than 50 shareholders (often members of the same family) or by one person.