In Accordance with AASB Framework Which of the Following Is

question 2

Multiple Choice

In accordance with AASB framework which of the following is consistent with the definition of income?

• A)Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity,other than those relating to contributions from equity participants.
• B)Increases in economic benefits during the accounting period in the form of inflows other than those relating to contributions from equity participants.
• C)Increases in economic benefits during the accounting period in the form of cash inflows or decreases of liabilities that result in increases in equity,other than those relating to contributions from equity participants.
• D)All of the given answers.
• E)None of the given answers.

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Definitions:

Actually Incurred

Costs or expenses that have been realized or expended, as opposed to estimated or projected costs.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods during a specific period, including costs of materials, labor, and overhead.

Cost of Goods Manufactured

The total cost of manufacturing the goods that were completed during a specific accounting period, including labor, materials, and overhead.

Direct Materials Used

The raw materials directly incorporated into a finished product during the manufacturing process.