IAS 1/AASB 101 Specifies That a Complete Set of Financial

question 62

Multiple Choice

IAS 1/AASB 101 specifies that a complete set of financial statements comprises which of the following?
I. Statement of cash flows
II. Statement of changes in equity
III. Statement of financial position
IV. Statement of profit or loss and other comprehensive income
V. Notes comprising a summary of accounting policies and other explanatory information.

• A) I, II, III and IV only
• B) II, III and IV only
• C) I, II, III, IV and IV
• D) III, IV and V only

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Definitions:

Synergies

Refers to the potential financial benefit achieved through the combining of companies, resources, or assets to create value greater than what those entities could produce independently.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, through scaling up.

Junk Bonds

High-yield bonds with a lower credit rating than investment-grade, indicating higher risk of default.

High Risk Firms

Companies that operate in industries or environments with a high level of uncertainty and volatility, posing greater risks to investors.