Which of the following businesses is likely to be a reporting entity?
A) A listed company.
B) A local newsagency.
C) A fish & chips shop.
D) An Asian grocery shop.

Question

Quizplus · Accepted Answer

A reporting entity in an entity in which it is reasonable to expect the existence of users to depend on general purpose financial reports for information to enable them to make economic decisions. An Asian grocery, a local newsagency, and a fish chips shop are more likely to be managed by owners who can obtain the financial information they require and do not rely of general purpose financial reports.

Which of the Following Businesses Is Likely to Be a Reporting