When Can a Non-Current Liability Not Be Derecognized

question 78

Multiple Choice

When can a non-current liability not be derecognized?

• A)When the company discharges the obligation or it expires.
• B)When the company pays the debt and continues to be liable for the liability.
• C)When the underlying debt contract is canceled.
• D)When the creditor provides the services specified in the debt contract.

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Definitions:

Novel Task

A new or unique task that has not been performed previously, often requiring innovative thinking and approaches.

Well-Learned Task

A task that an individual or team can perform efficiently and effectively due to extensive practice and familiarity.

Social Loafing Effect

identifies the tendency for individuals to exert less effort when working in groups than when working alone, due to perceived diffusion of responsibility.

Individual Work

refers to tasks or projects completed by a single person, focusing on personal responsibility and autonomy in achieving objectives.