Statement of Accounting Concept One (SAC1)

Which of the following features is found in the Statement of Accounting Concept One (SAC1) for reporting entities?

• Separation of management from the bulk of the owners and shareholders

• High employee turnover rate

• Low market share

• Minimal financial transactions

What type of importance is associated with large oil companies or charitable agencies according to SAC1?

• Financial importance

• Economic or political importance

• Social importance

• Environmental importance

Which of the following is an example of financial importance in reporting entities as per SAC1?

• High employee satisfaction

• Employment and taxation contribution

• Low operational costs

• High customer satisfaction

What is the purpose of general purpose financial reports according to SAC2?

• To assist in discharging accountability

• To increase company profits

• To reduce tax liabilities

• To attract more investors

What type of information should general purpose financial reports disclose?

• Information about marketing strategies

• Information relevant to performance, financial position, financing, and investing

• Information about employee satisfaction

• Information about future business plans

Who are disclosing entities required to comply with?

• International Financial Reporting Standards (IFRS)

• Australian Accounting Standards Board (AASB)

• Generally Accepted Accounting Principles (GAAP)

• International Accounting Standards Board (IASB)

What assumption is made about small proprietary companies compared to public companies?

• They have a larger number of parties involved

• They have a limited number of parties and can satisfy their immediate need for information

• They are required to disclose more information

• They have more complex financial structures

External stakeholders can be divided into how many groups?

• Two

• Three

• Four

• Five

Which of the following is NOT a type of resource provider?

• Employees

• Lenders

• Customers

• Creditors

Who are considered recipients of goods and services?

• Employees

• Lenders

• Customers

• Investors