Mr and Mrs K Urban are partners in Urban Ltd a music shop with sales revenue of $5,000,000 per annum,total assets of $10,000,000 and employees totalling 15.Blank Ltd is:
1.a reporting entity because there are at least two users of a financial report.
2.not likely to be a reporting entity because it is unlikely to have users dependent on its financial reports.
3.likely to be a reporting entity because there are two shareholders and it is an exempt proprietary entity.
4.not a reporting entity because small proprietary companies are frequently not considered reporting entities.
5.is a reporting entity because total assets of the entity is greater than $5,000,000.

Question

Quizplus · Accepted Answer

The Answer of Mr and Mrs K Urban are partners in Urban Ltd a music shop with sales revenue of $5,000,000 per annum,total assets of $10,000,000 and employees totalling 15.Blank Ltd is:
1.a reporting entity because there are at least two users of a financial report.
2.not likely to be a reporting entity because it is unlikely to have users dependent on its financial reports.
3.likely to be a reporting entity because there are two shareholders and it is an exempt proprietary entity.
4.not a reporting entity because small proprietary companies are frequently not considered reporting entities.
5.is a reporting entity because total assets of the entity is greater than $5,000,000.

Mr and Mrs K Urban Are Partners in Urban Ltd