Q1a. Briefly explain the main difference between a periodic and a perpetual inventory system. Identify which type(s) of business would be likely to use each of these inventory systems and explain why.  Briefly explain the role of a stocktake under each system.  

 

Q1b. Name and briefly describe the purpose (objective) of any two (2) AASB Australian Accounting standards.  Explain one accounting choice allowed under each of the standards you have chosen to discuss.

Q1c. Briefly explain what is meant by sustainability reporting, and outline reasons why a company might produce a sustainability report. Briefly describe legitimacy theory and identify whether you think there is a link between sustainability reporting and legitimacy theory.

 

Q2a. Why do you think a company might produce a “Sustainability Reporting”?

Q2b. How would you explain a possible link between ‘Legitimacy Theory’ and a decision to undertake “Sustainability Reporting”?

Q2c. Do you think that ‘sustainability reporting’ should be regulated?  Explain your thinking.

Answer rating: 100% (QA)

1a A periodic inventory system is one where businesses keep track of inventory levels at specific intervals usually at the end of each accounting period A perpetual inventory system is one where busin... View the full answer