Which of the following businesses is likely to be a "reporting entity", i.e. an entity that will have to report/prepare General Purpose Financial Reports?

a.A local dairy shop.

b.An NZX company.

c.A local bakery business.

d.A fish & chips shop.

e.Your local football club.

"Shareholder wealth" in a firm is generally represented by:

a.the book value of the firm's assets less the book value of its liabilities.

b.the amount of salary paid to its employees.

c.the market price per share of the company's shares.

d.the number of people employed in the firm.

External users of financial accounting information include all of the following except ________.

a.customers

b.lenders such as bankers

c.management of an organisation

d.potential investors

e.governmental agencies such as the IRD

Which of the following is NOT true?

a.All organizations add value to society.

b.All organizations have inflows and outflows of resources.

c.All organizations need some form of accounting information.

d.All organizations share a common purpose or mission.