The Amount Represented as a Current Liability,'Provision for Long-Service Leave

question 67

Multiple Choice

The amount represented as a current liability,'Provision for Long-Service Leave' generally represents:

• A) The amount to be expensed as long-service leave expense in the next 12 months.
• B) The amount of long-service that has been provided for, for all employees of the entity.
• C) The amount of long-service leave remaining to be taken by staff.
• D) The amount of long-service leave that is expected to be taken in the 12 months following balance date.
• E) None of the given answers.

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Definitions:

Assets Section

Part of a balance sheet that lists and describes an entity's resources or items of value owned.

Merchandising Business

An enterprise that purchases finished goods for resale to generate profit, operating between the producers and end consumers.

Supermarket

A large retail market that sells food and other household goods, typically organized into aisles.

Manufacturing Business

A type of business that produces finished goods from raw materials through the use of labor, machinery, and equipment.