AASB 101 Requires,as a Minimum,certain Line Items to Be Included

question 25

Multiple Choice

AASB 101 requires,as a minimum,certain line items to be included on the face of the balance sheet.Additional line items may be disclosed based on an assessment of:

• A) The nature and liquidity of assets.
• B) The functions of the assets within the entity.
• C) The amounts, nature and timing of liabilities.
• D) The nature and liquidity of assets and the amounts, nature and timing of liabilities.
• E) All of the given answers.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.

Liquidity Ratio

Measures a company's ability to meet its short-term obligations using its most liquid assets.

Profit Margin

A profitability ratio calculated by dividing net income by revenue, expressing the percentage of revenue that translates into net income.