Net Working Capital May Be Defined as Current Assets Minus

question 112

True/False

Net working capital may be defined as current assets minus current liabilities. This also defines the current ratio.

Know the accounting standards applicable for segment reporting prior and subsequent to 1 January 2009.

Comprehend the requirements for segment disclosure in consolidated and parent entity financial statements.

Grasp the differences in prescriptiveness and disclosure requirements between AASB 114 and AASB 8/IFRS 8.

Learn the disclosure requirements under AASB 8/IFRS 8 related to segment reporting.

---

Definitions:

Estimated Regression Equation

An equation derived from regression analysis used to predict the dependent variable based on one or more independent variables.

SSR

Sum of Squares due to Regression, a measure used in statistical analysis to determine the explanatory power of a regression model.

SSE

Sum of Squared Errors, a measure of the discrepancy between the data and an estimation model.

Null Hypothesis

The hypothesis tentatively assumed true in the hypothesis testing procedure.