ONE 15 MARKS Choose the best answer for each of the following multiple choice questions and write its letter to the corresponding question number in the answer table (use capital letters: A, B, C or D). Part 1: 1-CLOS. The fact that an entity has related parties cannot have any effect on the entity's financial performance unless there are transactions between the entity and those parties. True or False? - True b- False 2-CLOS- Every operating segment of an entity is also a reportable segment. True or False? True b- False 3-CLOS- Galaxy Limited is a listed company operating in retail industry with three business units: Milky Way, Andromeda, and Whirlpool. Which of the followings is likely to be the key management personnel of Galaxy Limited? a- The general manager of Milky Way; b- The managing director's personal assistant; c- The company's auditor; d- The company's IT manager. 4- CLOS- An entity (X) is necessarily related to a reporting entity (Y) if: a- X owns ordinary shares in Y b- X is a major supplier of Y c-X and Y are both subsidiaries of the same parent d- X is a bank which lends money to Y Part 2 5-CLO4-According to IAS 36 Impairment of Assets, the recoverable amount test requires an entity to compare the fair value an asset less costs to sell, with: a- the amount obtainable from the sale of the asset b- the costs directly attributable to the liquidation of the asset e- its value in use. d- its disposal value Page 2 of 9