AASB 101's Definition of Current Assets and Further Discussion at Paragraph

question 56

Multiple Choice

AASB 101's definition of current assets and further discussion at paragraph 59 will:

• A) Simplify the recognition of current assets.
• B) Require greater professional judgement in order to determine an entity's normal operating cycle.
• C) Improve analysts' decisions as ratios which use current assets will use the same information.
• D) Have implications for assessing the liquidity of entities as current assets will now include fewer items.
• E) None of the given answers.

---

Definitions:

GAD

Generalized Anxiety Disorder, characterized by persistent and excessive worry about a number of different things.

Physiological Arousal

The body's response to external stimuli, resulting in physical and psychological reactions, such as increased heart rate and heightened alertness.

Worrying

The mental process of thinking about problems or unpleasant things that might happen in a way that makes you feel unhappy and frightened.

Bullied

The experience of being intimidated, harassed, or mistreated, typically by someone who is perceived to be more powerful.