Which Statement Is Correct

question 55

Multiple Choice

Which statement is correct?

• A)Supplier discounts can only be accounted for by using the gross method.
• B)The amount owing for trade payables is generally not known with a high degree of certainty.
• C)An accrued liability is needed when a company has received goods,but not the invoice.
• D)Completeness means that obligations are reported in the proper accounting period.

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Definitions:

Entity Approach

A concept in consolidation accounting that treats the group of parent and subsidiary companies as a single reporting entity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, usually with fixed dividends.

Classified

In accounting, this term refers to the arrangement of items in financial statements into categorized sections and subsections to enhance clarity and understanding.