Which of These Criteria Specified in the Conceptual Framework Must

question 12

Multiple Choice

Which of these criteria specified in the Conceptual Framework must be met before a liability can be recognised in the accounting records?
i. It is probable that the future sacrifices associated with the item will occur.
ii. The liability is beyond a reasonable doubt.
iii. The liability has a cost or value that can be measured with reliability.

• A) i, ii, iii
• B) i, iii
• C) ii, iii
• D) i, ii

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Definitions:

Tchebysheff's Theorem

A statistical theorem stating that for any distribution, a minimum proportion of observations lies within any given number of standard deviations from the mean.

Standard Deviations

A measure of the dispersion or variation in a distribution, indicating how spread out the values are from the mean.

Frequency Table

A table that displays the frequencies of different data categories, showing how often each category occurs in the dataset.

Mound-Shaped Distribution

Another term for a normal distribution, characterized by its bell-shaped curve that is symmetrical around the mean.