Under SAC 1, Which Entity Is the Least Likely to Have

question 14

Multiple Choice

Under SAC 1, which entity is the least likely to have users dependent on general-purpose financial reports?

• A) A small proprietary company whose shareholders also run the business.
• B) A company which is listed on the stock exchange.
• C) A company with a large number of shareholders.
• D) A company which issues debentures to the public.

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Definitions:

Cause of Action

A collection of sufficient facts that validates the entitlement to initiate legal action for the purpose of acquiring money, property, or enforcing a right against someone else.

Breaching Party

the party in a contract who fails to fulfill their contractual obligations, thereby violating the agreement.

Promisee

The individual or entity to which a promise or agreement is made.

Purely Incidental

Occurring by chance and of secondary importance, without direct relevance to the main issue.