At Reporting Date for Year 1, Delta Limited Had a Loan

question 12

Multiple Choice

At reporting date for Year 1, Delta Limited had a loan from its financial institution that is expected to settle within six months. The loan term was renegotiated after reporting date and before the authorisation date of the financial statements and the repayment date was extended by two years. For the purposes of financial statement presentation for Year 1, this loan is classified by Delta Limited as a/an:

• A) current liability.
• B) contingent liability.
• C) non-current liability.
• D) off-statement of financial position liability.

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Definitions:

Olfactory Adaptation

The temporary, normal inability to distinguish a particular odor after a prolonged exposure to that airborne compound.

Odorant Receptors

Specialized protein molecules located in the nasal cavity that detect and respond to chemical compounds in the air, contributing to the sense of smell.

Membranous Labyrinth

A network of fluid-filled passages and cavities within the inner ear, instrumental in the sense of balance and hearing.

Endolymph

A fluid within the inner ear's membranous labyrinth, crucial for transmitting sound and balance signals to the brain.