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Contemporary Accounting 8th Edition Test Bank

Contemporary Accounting 8th Edition Test Bank helps you understand exam patterns, improve retention, and develop problem-solving skills.

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    Chapter 1 – Introduction to accounting TRUE/FALSE 1. An objective of accounting is to provide information to predict and evaluate the going concern of an entity. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: What is accounting 2. Accounting information is always quantitative and objective. ANS: F PTS: 1 AACSB: K nowledge, Analytical TOP: What is accounting 3. Stewardship is the term used to refer to management’s role in protecting an entity’s economic resources from theft, fraud and wastage. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: For what purpose is accounting used? 4. Management is an external user of accounting information. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Who uses accounting information ? 5. The balance sheet is an example of a management accounting report. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Who uses accounting information ? 6. The statement of comprehensive income is an example of a financial accounting report. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: Who uses accounting information? 7. The difference between management accounting and financial accounting is that management accounting focuses on external users whereas financial accounting focuses on internal users. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: For what purpose is accounting used? 8. Management has the responsibility of selecting accounting policies. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: Economic consequences of accounting information. 9. Where an Accounting Standard exists, accounting policies must comply with the Accounting Standar d. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: Economic consequences of accounting information.

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    10. The economic consequences of accounting information are limited to the compensation schemes paid to managers. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Economic consequences of accounting information. 11. Political costs create incentives for managers to select accounting policies that increase reported profits. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Economic consequences of accounting information. 12. Triple bottom line reporting confirms the maximisation of profit as the major objective of listed companies. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Triple bottom line reporting 13. A triple bottom line report refers to the publication of economic, environmental and corporate governance information in an integrated report. ANS: F PTS: 1 AACSB: Knowledge TOP: Triple bottom line reporting 14. Because triple bottom line reports are voluntary, the provision of an independent verification of the reports should enhance the reliability of the information provide d. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: Triple bottom line reporting 15. The GRI indicators are established by the committee without any input from stakeholders. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Triple bottom line reporting 16. The audit of a triple bottom line report is normally completed by the financial auditor. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Triple bottom line reporting MULTIPLE CHOICE 1. Accounting information: A. is helpful for financing decisions but not for marketing decisions. B. is useful for profit - making entities but is not needed for not - for - profit entities. C. must follow accounting principles provided by management. D. is useful for all economic organisations. ANS: D PTS: 1 AACSB: Knowledge, Analytical TOP: What is accounting

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    2. The primary purpose of accounting is to: A. help people make decisions about economic activities. B. provide information that management can use to convince s hareholders that management deserves high salaries. C. provide employment to persons who have a knack for dealing with numbers. D. minimise the amount of profit that a firm has earne d. ANS: A PTS: 1 AACSB: Knowledge, Analytical TOP: What is accounting 3. Accounting is likely to involve: A. qualitative and financial information. B. quantitative and financial information. C. quantitative and non - financial information. D. qualitative and non - financial information. ANS: B PTS: 1 AACSB: Knowledge, Analytical TOP: What is accounting 4. For the individual, accounting has at least three functions. They are: A. planning, buying and selling. B. planning, decision support and spending. C. saving, controlling and buying. D. planning, controlling and decision support. ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: What is accounting 5. The difference between management accounting and financial accounting is: A. management accounting focuses on external users whereas financial accounting focuses on internal users. B. management accounting focuses only on the control function whereas financial accounting focuses on the reporting function. C. management accounting focuses on internal users whereas financial accounting focuses on external users. D. management accounting focuses on the reporting function whereas financial accounting focuses on the control function. ANS: C PTS: 1 AACSB: K nowledge, Analytical TOP: For what purpose is accounting information? 6. Examples of internal and external users of information are: A. creditors and investors. B. managers and unions. C. creditors and unions. D. banks and government authorities. ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Who uses accounting information? 7. The basic difference between managerial accounting and financial accounting is that: A. the financial accounting system relies on accounting information whereas managerial accounting does not. B. financial accounting relies on information gathered from sources outside the business whereas managerial accounting relies on internally generated information.

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    C. financial accounting is concerned with providing information to outsiders, whereas managerial accounting is concerned with providing information to managers for their use in directing the activities of the organisation. D. managerial accounting information is useful to not - for - profit organisations, but financial accounting information is not. ANS: C PTS: 1 AACSB: K nowledge, Analytical TOP: For what purpose is accounting information? 8. Which of the following is an example of a stakeholder of a business? A. An owner B. An investor C. A manager D. All of the above ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Who uses accounting information? 9. Financial accounting is the process of: A. preparing and reporting accounting information for external decision makers. B. preparing and reporting accounting information for internal decision makers. C. enacting generally accepted accounting principles. D. preparing and reporting accounting information to lenders . ANS: A PTS: 1 AACSB: K nowledge, Analytical TOP: For what purpose is accounting information? 10. Management accounting is the process of: A. preparing and reporting accounting information for external decision makers. B. preparing and reporting accounting information for an organisation’s internal decision makers. C. enacting generally accepted accounting principles. D. preparing and reporting accounting information to lenders . ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: For what purpose is accounting information? 11. Match the type of accounting information to the term that best describes it. Information pr epared for Information prepared for external decision makers internal decision makers A. Financial accounting Financial accounting B. Financial accounting Managerial accounting C. Managerial accounting Financial accounting D. Managerial accounting Managerial accounting ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: For what purpose is accounting information used ?

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    12. Information contained in external financial reports can be useful to a firm’s: Suppliers Employees A. No No B. No Yes C. Yes No D. Yes Yes ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Who uses accounting information? 13. Match the type of accounting information to the term that best describes it. Information prepared Information prepared for suppliers’ use for creditors’ use A. Managerial accounting Financial accounting B. Managerial accounting Managerial accounting C. Financial accounting Financial accounting D. Financial accounting Managerial accounting ANS: C PTS: 1 AACSB: K nowledge, Analytical TOP: For what purpose is accounting information? 14. Which one of the following groups is not generally regarded as an external user of the accounting information of an entity? A. Employees B. Customers C. Management D. Lenders ANS: C PTS: 1 AACSB: K nowledge, Analytical TOP: Who uses accounting information? 15. A possible limitation of accounting information is that accounting information: A. can only be used by bankers. B. is relevant depending on the needs of users. C. does not report in money terms. D. relates to past information ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Limits on the usefulness of accounting information 1 6 . The selection of appropriate accounting policies for a company is the responsibility of: A. the body that sets Accounting Standards. B. the company secretary . C. the internal auditors of the company. D. the management of the company. ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Economic consequences of accounting information 1 7 . What is meant by the term economic consequences of accounting policy choice ? A. The selection of accounting policies is expensive and time - consuming. B. Accounting numbers affect the financial positions of various users.

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    C. Accounting policies are selected to minimise the position of creditors. D. The creation of accounting standards consumes a large amount of resources. ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Economic consequences of accounting information 1 8 . In a firm that offers a bonus scheme based on accounting profit, managers can, in most cases, be expected to adopt a: A. profit - decreasing accounting policy. B. profit - increasing accounting policy. C. dividend - increasing accounting policy. D. liability - increasing accounting policy. ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Economic consequences of accounting information 19 . Debt covenants primarily protect the interests of which of the following parties? A. Shareholders B. Creditors C. Employees D. Companies ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Economic consequences of accounting information 20. Triple bottom line reporting A. reinforces profit as the primary objective of companies. B. recognises the legal and non - legal obligations of a company to all legitimate stakeholders in a company. C. is mandatory in Australi a. D. is where a result is produced for financial, social and environment al benefit . ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting 21. Arguments in favour of triple bottom line reporting include: A. enhanced all - round company credibility from greater transparency. B. that it facilitates the implementation of an environmental strategy. C. enhanced communication with stakeholders. D. all of the above. ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting 22 The Global Reporting Initiative: A. refers to an institution based in Sweden. B. is the most widely cited benchmark for the determination of the content of a triple bottom line report. C. was established as a private, profit - making initiative. D. is a set of reporting obligations agreed as part of the Kyoto agreement. ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting

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    23 . Which of the following would not form part of social reporting under the GRI 3? A. Number of female employees. B. Number of indigenous employees. C. Donations to charities. D. Greenhouse gas emissions. ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting 24. Which of the following would not be part of environmental reporting under the GRI 3? A. Greenhouse gas emissions B. Amount of recycled paper C. Child labour D. Biodiversity management ANS: C PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting 2 5 . Which of the following reports are not reports specifically on sustainability issues? A. Sustainability report B. Annual report C. Triple bottom line report D. Stakeholder impact report ANS: B PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting 2 6 . Which of the following disclosures would you expect to be included by a company in a triple bottom line report? A. Greenhouse gas emissions B. Donations to charities C. Percentage of female staff in senior management positions D. All of the above ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Triple bottom line reporting 2 7 . Accounting firms generally provides the following services: A. audit, assurance and taxation. B. audit, budgeting and management consulting. C. audit, budgeting and cost accounting. D. internal audit, budgeting and management consulting. ANS: A PTS: 1 AACSB: K nowledge, Analytical TOP: Careers in accounting 2 8 . Managers may select accounting policies for which of the following reasons? A. To prov ide useful information to users B. To avoid violating debt contracts C. To influence compensation plans D. All of the above are correct ANS: D PTS: 1 AACSB: K nowledge, Analytical TOP: Economic consequences of accounting information

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    SHORT ANSWER 1. What is the role of accounting information in business? ANS: Accounting information helps decision makers. It aids managers by providing quantitative information about the entity to help them in planning, operating and evaluating the entity’s activities. Accounting information helps external decision makers by providing them with financial statements containing economic information about the performance and financial position of the entity. PTS: 1 AACSB: K nowledge, Communication TOP: For what purpose is accounting inform a tion used? 2. Distinguish managerial accounting from financial accounting. Your answer should include a brief discussion of differences in the types of information provided to users as well as differences in the identity of users of financial and managerial accounting information. ANS: Financial accounting is used primarily by external users such as shareholders and creditors and by senior management as a means of evaluating performance. Financial accounting is presented in summary form and must follow generally accepted accounting principles (GAAP). GAAP ensures that information is consistent from period to period and comparable across entities. Managerial accounting is used internally by senior management, functional and division managers and middle managers. Managerial accounting information is frequently presented with detailed information for day - to - day decisions. The information provided does not have to conform to GAAP or need not be consistent between periods or comparable across entities. Rather, it focuses on the information needs of managers. It is critical that managerial accounting information be provided in a timely manner. PTS: 1 AACSB: K nowledge, Communication TOP: For what purpose is accounting info r mation used? PROBLEM 1. Doug Murphy, a newly hired accountant, wanted to impress his boss, so he stayed late one night to analyse the office supplies expense. He determined the cost by month, for the past 12 months, of each of the following: computer paper, copy paper, fax paper, pencils and pens, note pads, postage, corrections supplies, stationery, and miscellaneous items. Why do entities, such as companies, not include information of this nature in published (general purpose) financial statements? ANS: Entities provide information to external users to make decisions. The primary decision makers external to the business are creditors, bankers, analysts, shareholders, and potential shareholders. These users need to know that the company can repay its debts, earn a profit, and pay dividends. The cost by month for each item of office supplies does not provide any additional information that would be helpful for any external users. In addition, the time and expense necessary to create the additional detail would outweigh the benefits of the final product. PTS: 1 AACSB: K nowledge, Communication, Analytical TOP: For what purpose is a c counting information used?

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    CASE 1. In October 2002, Duke Power, the regulated electricity utility of the United States (US) corporation Duke Energy, agreed to pay $25 million to its customers to settle allegations by regulators in North and South Carolina that it had underreported net earnings by about $123 million between 1998 and 2002. The under reporting of net earnings by Duke Energy was allegedly undertaken in order to avoid having to cut its electricity rates. Required: Explain what is meant by the term ‘economic consequences’ and relate this to the underreporting of net earnings by Duke Energy. ANS: Economic consequences: wealth effects, resulting from accounting policy choices, impacting, for example, managers, the firm, shareholders and/or debtholders. Given Duke Energy’s status as a regulated electricity utility, and the explanation for the underreporting, from an economic consequences perspective the entity’s choice of accounting policies lies with political costs ( p 17). Further, ultimately if large companies attract lower political cost s its managers will be rewarded (p 17). PTS: 1 AACSB: K nowledge, Communication, Analytical TOP: Economic consequences of accounting information

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    Chapter 2 – Types of organi s ations and t he financial reporting framework TRUE/FALSE 1 Mutual agency refers to the fact that each member of the partnership form of business entity can bind the other(s) in contract within the scope of normal operations. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 2. There are several advantages to forming a partnership, including the ease with which it can be formed and the limited rules and regulations that apply to it. However, as for a company, one of the regulations is that a partnership must prepare financial statements in accordance with Accounting Standards if it is deemed to be a reporting entity. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 3 . Although partnerships may have a tax advantage over companies in that it is the partners that are taxed and not the partnership, a disadvantage of partnerships is that they have unlimited liability. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 4 . All companies can raise funds through the general public but not all companies have limited liability. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 5 . If a company has sales of $8 million, assets of $4 million and 60 employees, then it may be classified as a small proprietary company. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 6 . All limited - by - shares companies must have ‘Ltd’ in their names, but a private company is distinguishable from a public company because it has ‘Pty’ as well as ‘Ltd’ in its name. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 7 . Two companies were formed on 1 January 20X3, with the names Pluto Pty Ltd and Neptune NL. From the names of the companies, it is clear that the former is a proprietary company and the latter is a mining company. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations

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    8 . There are several differences between the financial statements of a company and those of a partnership, not least of which is the disclosure of taxation on the balance sheet as a liability. For a company, the disclosure is a single amount as it is the company that is liable and not the owners. For a partnership, the amount of taxation is split and reported separately in accordance with each partner’s liability. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 9 . The reason why company shareholders may have the advantage of limited liability rests with the entity principle in accounting, not the legal status of the company. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 1 0 . The partnership form of business organisation exists where two or more carry on a business in common with a view to profit. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 1 1 . Accounting Standards set by the Australian Accounting Standards Board (AASB) apply to both the private and public sectors in Australi a . ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The framework for setting accounting standards 1 2 . Due process is primarily concerned with producing Accounting Standards that meet managers’ objectives. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The standard setting process 1 3 . The Corporations Act 2001 requires that financial statements include a directors’ report, a directors’ statement and an auditor’s report. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The Corporations Act 1 4 . The directors’ report included with a company’s financial statements contains an opinion on whether the balance sheet and income statement present a ‘true and fair’ view. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The Corporations Act 1 5 . Half - yearly reports contain more detailed information than annual reports. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The Corporations Act

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    1 6 . A conceptual framework can be defined as a set of interrelated objectives and fundamentals that is expected to lead to consistent standards, and that prescribes the nature, function and limits of financial accounting and reporting. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: What is a conceptual f ramework? 1 7 . One of the objectives of a conceptual framework is that it is considered to be a defence against politicisation. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: Objectives of a conceptual framework 1 8 . A general - purpose financial report is primarily directed toward the common information needs of a wide range of users. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 19 . Users of general - purpose financial reports include investors, financial advisors, employees, lenders, suppliers and customers. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 0 . A reporting entity is an entity for which there are users who rely on financial statements as their major source of information about the entity. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 1 . General - purpose financial reports provide the information that is required for both internal and external user group needs. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 2 . Accrual accounting refers to the method of measuring profit on the basis of cash flow, rather than when revenues and expenses occur. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 3 . The going concern assumption assumes that an entity will continue to operate successfully into the foreseeable future. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 4 . An asset must have physical qualities that can be measured reliably. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework

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    2 5 . A liability must always be a legal obligation that arises from past events. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 6 . Equity is the residual interest in the assets of the entity after deduction of all its liabilities. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 7 . Revenue means the gross inflows arising from normal operations plus all gains during the accounting perio d. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 2 8 . The elements of financial statements are always measured using the historical cost metho d. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: Measurement of the elements of financial statements 29 . The Australian Financial Reporting Council is not able to directly influence the content of the AASB’s accounting standards, but has the capacity to do so given its control of the budget and priorities of the AAS B. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The framework for setting accounting standards 3 0 . The political nature of standard setting refers to the fact that, for example, preparers may lobby the standard setters to promote their own self - interest rather than the decision - making usefulness of general purpose reports. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The political nature of accounting standard setting 3 1 . The fundamental element equity does not require recognition criteria, because it represents the residual interest in assets, after deducting liabilities. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 3 2 . In accordance with the I ASB Conceptual Framework , income includes both revenue and gains. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The conceptual framework 3 3 . The external auditor is responsible for preparing the general - purpose financial reports of a company. ANS: F PTS: 1 AACSB: K nowledge, Analytica l T OP: External audits

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    3 4 . The responsibilities of the Australian Financial Reporting Council include advising the government on the process of setting accounting standards. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The framework for setting accounting standards 3 5 . In Australia the overriding responsibility for the preparation and presentation of general - purpose reports resides with the directors of a company. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: The corporations act 3 6 . An external auditor seeks to provide reasonable assurance that the financial statements of a company are true and fair, not a guarantee that every error in the financial statements of the entity has been detecte d. ANS: T PTS: 1 AACSB: K nowledge, Analytica l T OP: External audits MULTIPLE CHOICE 1. Which of the following is not true of sole traders? A. They are one - owner businesses. B. They are not normally reporting entities. C. They are separate legal entities. D. They usually have limited funds at their disposal. ANS: C PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organisations 2. Which of the following is not true for a partnership? A. Creditors can supply goods on credit to a partnership. B. Debtors can purchase goods on credit from a partnership. C. Partnerships have to pay their tax yearly. D. Partnerships can enter contracts on behalf of the partnership. ANS: C PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 3. Which of the following statements regarding partnerships is incorrect? A. There are no legal formalities required to form a partnership and it can be an oral agreement. B. Partnerships have unlimited liability not subject to the amount contributed by each partner. C. The partnership is subject to income tax, not the individual partners. D. Each partner has the authority to enter contracts on behalf of the partnership, provided the contracts relate to normal operations. ANS: C PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 4. Which of the following would not be considered a disadvantage of forming a partnership? A. Limited life B. Unlimited liability C. Ease of formation D. Mutual agency

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    ANS: C PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 5. Jack and Jill Repairers is founded by partners Jack, Jill and Jolly. Jack, Jill and Jolly contributed $3000, $5000 and $8000 respectively. For the year ending 20 X 2, Jack and Jill Repairers produced a profit of $12 , 000. If the profits are distributed in accordance with the initial investment which of the following is true? A. Jack gets $2250 and Jill gets $6000. B. Jack gets $3750 and Jolly gets $6000. C. Jack gets $2250 and Jill gets $3750. D. Jack gets $2250 and Jolly gets $8000. ANS: C PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 6. Which of the following items of information would not be found in the balance sheet of a partnership? A. Assets B. Liabilities C. Dividends payable D. Distribution of profits to partners ANS: C PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 7. Which of the following is true of companies? All companies: A. are limited liability companies. B. are separate legal entities. C. have a limited life. D. are bound by the contracts s igned by shareholders. ANS: B PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 8. A large proprietary company must have its financial statements audited and lodged with the: A. Australian Securities Exchange. B. Australian Securities and Investments Commission. C. Financial Reporting Council. D. Australian Accounting Standards Boar d. ANS: B PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations 9. Which of the following types of business organisation has a legal identity separate from those of the owners? A. Sole proprietorships B. Companies C. Partnerships D. All of the above. ANS: B PTS: 1 AACSB: K nowledge, Analytica l T OP: Types of organ i sations

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