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)The structure of the entity,e.g.whether it is a sole trader or a company
B)Whether ownership and management are separate
C)Whether the entity has economic or political importance
D)The size or indebtedness of the entity

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 judge whether an entity is a reporting entity that should prepare general purpose financial reports. The other options, ownership and management separation, economic or political importance, and size or indebtedness, are all factors that may be considered in determining whether an entity is a reporting entity.

Which of the Following Is Not a Characteristic Used to Judge