Which of these is not an indicator listed in SAC 1 to help assess the existence of a reporting entity?

Select one:

a.Economic or political influence.

b.Revenue greater than $2 million.

c.A high degree of separation between management and owners.

d.Control over large amounts of resources and/or a large amount of borrowings.

The following are employee benefits except for:

Select one:

a.GST paid

b.Wages and salaries

c.Non-monetary fringe benefits

d.Employer's contribution to superannuation

The basic journal entry to create general reserve is:

A) DR Income, CR General reserve

B) DR General reserve, CR Retained earnings

C) DR Profit or loss summary, CR General reserve

D) DR Retained earnings, CR General reserve

Which of these is not an advantage of incorporation?

Select one:

a.The ability to transfer shares easily.

b.Continuity of existence

c.Shareholders' liability is limiteD.

d.Government regulation is minimal.

Which of the following is a not a disadvantage of operating as a partnership rather than as a company?

Select one:

a.Greater difficulty in selling a share of the business.

b.Partners can act on behalf of the other partners and bind them to a contract by acting within the apparent scope of the business.

c.Personal liability for all obligations of the partnership.

d.Fewer disclosure requirements

Which of the following is not a constraint of the Conceptual Framework's qualitative characteristic of timeliness?

Select one:

a.The frequency of the reporting perioD.

b.The longer the delay in publication of the financial reports after the end of the financial period, the less relevant the information for decision-making purposes.

c.Preparing financial reports for a 12-month perioD.

d.Having information available in time to influence decisions.