Which of the following is not a characteristic used to judge whether an entity is a reporting entity that should prepare general purpose financial reports?
A)Whether the entity has economic or political importance.
B)The size or indebtedness of the entity.
C)The structure of the entity, e.g. whether it is a sole trader or a company.
D)Whether ownership and management are separate.

Question

Quizplus · Accepted Answer

The structure of the entity, such as whether it is a sole trader or a company, is not a characteristic used to determine if an entity should prepare general purpose financial reports. The other options relate to factors that can influence the need for such reports.

Which of the Following Is Not a Characteristic Used to Judge