According to the Exposure Draft of Proposed Amendments to IAS

question 69

Multiple Choice

According to the Exposure Draft of Proposed Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets,

• A) only conditional obligations are recorded.
• B) liabilities must have measurement certainty.
• C) the term "provisions" is being considered for elimination.
• D) a conditional obligation related to an unconditional obligation is not recognized.

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Definitions:

Indirect Expenses

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a business.

Direct Expense

A cost that can be directly attributed to the production or sale of specific goods or services in a business.

Indirect Expense

Costs that are not directly tied to a specific product or service but are necessary for the overall operation of a business, such as utilities or rent.

Rent

The cost incurred for using properties or equipment owned by another party for a specified period.