In Accordance with AASB Framework Which of the Following Transaction(s)is/are

question 40

Multiple Choice

In accordance with AASB framework which of the following transaction(s) is/are consistent with a definition of income?

• A)Collection of accounts receivable.
• B)Debt forgiveness.
• C)Issue of share capital.
• D)All of the given answers.
• E)Collection of accounts receivable and debt forgiveness.

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Definitions:

Variable Costs

Costs that vary in total directly and proportionately with changes in the activity level or volume of output.

Financial Advantage

The benefit or edge that a business or individual has that allows them to generate more income or wealth compared to others.

Fixed Manufacturing Overhead

Regular, consistent expenses that do not vary with production levels, such as salaries of supervisors and rent for factory facilities.

Financial Advantage

The benefit obtained from making specific financial decisions or investments, often measured in terms of profit, savings, or a more favorable financial position.