When an Entity Has a Legally Enforceable Right to Set

question 24

Multiple Choice

When an entity has a legally enforceable right to set off the recognised amounts of a financial asset and financial liability and it intends to settle on a net basis, it:

• A) can write off both the asset and the liability.
• B) is not entitled to offset the asset and liability.
• C) may offset the financial asset and liability.
• D) need not present the asset, the liability or the net amount in its financial statements.

Distinguish between nominal and real wage changes and their implications.

Understand the concept of marginal revenue product (MRP) and its significance in employment decisions.

Recognize the effects of unionization and labor market regulations on wages and employment.

Calculate and understand the concept of marginal labor cost.