Which Statement Is Not Correct Under the IFRS Framework

question 9

Multiple Choice

Which statement is not correct under the IFRS Framework?

• A)A reliable estimate for an asset is presumed to exist.
• B)A provision exists if the timing of payment is uncertain.
• C)A provision exists if the amount of payment is uncertain.
• D)A reliable estimate for a liability is presumed to exist.

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Definitions:

Product Costs

Costs incurred by a business to manufacture a product or acquire products for resale, including material, labor, and overhead.

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of finished goods.

Factory Overhead

Refers to all indirect costs associated with manufacturing, including but not limited to utilities, rent, and equipment maintenance, which are not directly tied to the production of specific goods.

Manufacturing Process

A series of steps involving the conversion of raw materials into finished goods, including design, fabrication, and assembly operations.