The Two Most Common Types of Companies That Operate in Australia

question 22

Multiple Choice

The two most common types of companies that operate in Australia are:

• A) proprietary and public companies.
• B) proprietary and no liability companies.
• C) public companies and companies limited by guarantee.
• D) public and no liability companies.

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Definitions:

Elimination

The process in accounting of removing the effects of inter-company transactions to avoid double counting in consolidated financial statements.

Share Capital Account

a financial record that represents the funds raised by a company through issuing shares to its shareholders.

Consolidated Statements

Reports that combine the financial performance and position of a parent company and its subsidiaries, offering a comprehensive overview of the total business.

Direct Approach

A method of presenting the cash flow statement where major classes of gross cash receipts and gross cash payments are disclosed, offering transparency in financial reporting.