AASB 101 Indicates That When Presenting a Balance Sheet an Entity

question 7

Multiple Choice

AASB 101 indicates that when presenting a balance sheet an entity shoulD.

• A) Present all assets and liabilities as two groups and disclose their specific classifications in notes as per paragraphs 57-67.
• B) Only present items on the basis of liquidity if that information is reliable and more relevant. If this is the case, assets should be discretely grouped into current and non-current classifications.
• C) Present items broadly in order of liquidity if that information is reliable and more relevant than following paragraphs 57-67.
• D) Always classify items as current and non-current.
• E) None of the given answers.

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Definitions:

Insulation

Materials used to electrically isolate conductors or components, preventing unwanted current flow and ensuring safety.

Induction Motors

Electric motors that operate by inducing a rotating magnetic field in a conductive rotor, without physical contact, typically used in industrial applications.

Rotors

The rotating part of an electrical machine such as a motor or generator, which turns around an axis.

Electric Motor

A machine that converts electrical energy into mechanical energy, used in countless applications from household appliances to industrial machines.