The Following Is an Extract from a Lease Payment Schedule

question 45

Multiple Choice

The following is an extract from a lease payment schedule for Lessee Pty Limited. Assuming Lessee Pty Limited uses the current/non-current dichotomy to disclose liabilities, what are the amounts of (a) current liabilities; and (b) non-current liabilities, relating to this lease, disclosed by Lessee Pty Limited at 30 June 2012?

• A) (a) current 2,601; (b) non-current 26,012.
• B) (a) current 1,976; (b) non-current 13,268.
• C) (a) current 1,796; (b) non-current 15,243.
• D) (a) current 1,633; (b) non-current 17,039.
• E) Cannot determine from the information provided above.

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Definitions:

Constrained Resource

A limited resource within a manufacturing or production process that restricts the output volume.

Obsolete Inventory

Items in stock that are out of date or no longer in demand, which are unlikely to be sold.

Decision

The process or action of choosing among alternatives, often based on analysis and information to achieve a desired goal.

Overtime

Extra hours worked beyond the regular working schedule, often compensated at a higher pay rate.