Exam 2: Types of Organisations and the Financial Reporting Framework

The responsibilities of the Australian Financial Reporting Council include advising the government on the process of setting accounting standards.

The opportunity for interested parties to participate in the development of accounting standards lies in the 'due process'. Discuss.

What is the expectation gap associated with the external audit?

The auditor's report:

Which of the following items of information would not be found in the balance sheet of a partnership?

Which of the following is not a primary characteristic of the accounting definition of an asset?

What is the audit expectation gap?

Which of the following accounts is not a liability?

General-purpose financial reports provide the information that is required for both internal and external user group needs.

Equity on the balance sheet of a sole proprietorship is normally referred to as:

A small proprietary company is one that has:

Which of the following are likely to be reporting entities?

Which one of the following is not an advantage of a company?

Two companies were formed on 1 January this year, with the names Pluto Pty Ltd and Neptune NL. From the names of the companies, it is clear that the former is a proprietary company and the latter is a mining company.

If a company has sales of $8 million, assets of $4 million and 60 employees, then it may be classified as a small proprietary company.

The external auditor is responsible for preparing the general-purpose financial reports of a company.

It can be determined that Alpha Pty Ltd is a proprietary company as its records show that:

What is a conceptual framework from the perspective of financial reporting?

All limited-by-shares companies must have 'Ltd' in their names, but a private company is distinguishable from a public company because it has 'Pty' as well as 'Ltd' in its name.

The advantages of the corporate form of business organisation do not include: