According to the Corporations Act 2001, a small proprietary company is one which satisfies at least two of the following tests: it must have fewer than 100 employees at the end of the financial year, consolidated gross assets of less than $25 million and:

Select one:

a. total liabilities of less than $10 million.

b. total liabilities of less than $20 million.

c. consolidated revenue of less than $50 million.

d. more than 100 shareholders at the end of the financial year.

A conceptual framework consists of a set of principles with the purpose to:

Select one:

a. assist users in the interpretation of information in financial statements.

b. assist standard setters to develop accounting standards.

c. assist preparers of financial statements in the application of accounting standards and in dealing with topics that are not the subject of existing accounting standards.

d. all of the options are correct.

Which of the following statements is correct?

Select one:

a. Equity is increased by profit and owner contributions.

b. Equity can be sub-classified in the statement of financial position.

c. Equity is defined as the residual interest in the assets of the entity after deducting all its liabilities.

d. All the other options given.