Which of the Following Statements Is Correct About Accounting for Financial

question 22

Multiple Choice

Which of the following statements is correct about accounting for financial liabilities?

• A)Financial liabilities can only be accounted for using amortized cost.
• B)Financial liabilities can only be accounted for using fair value though profit and loss.
• C)Financial liabilities can be accounted for using historical cost.
• D)Financial liabilities can be accounted for using amortized cost or fair value.

---

Definitions:

Direct Observation

A method of research where subjects are observed in their natural setting without interference or manipulation by the observer.

Decontextualized

The process of removing text, speech, or any form of data from its original context, which may affect the interpretation of its meaning.

Emotional Impact

The profound effect that an experience or event has on an individual's emotional state and well-being.

Unpredictable

Lacking consistency or regularity, making outcomes or future events difficult to anticipate or forecast.