When Allocating Resources Using Market Price

question 137

Multiple Choice

When allocating resources using market price,

• A) everyone who wants a good gets one.
• B) everyone who is willing to pay for a good gets one.
• C) everyone who is able to pay for a good gets one.
• D) everyone who is willing and able to pay for a good gets one.

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Definitions:

Contingent Asset

An asset that might come into existence subject to the occurrence of some uncertain future event.

AASB 137

The Australian Accounting Standards Board standard that specifies the accounting for provisions, contingent liabilities, and contingent assets.

Deferred Liability

A deferred liability is a financial obligation that a company owes and is recorded on its balance sheet to be settled in a future period.

Uncertain Future Events

Events whose occurrence and impact cannot be predicted with certainty, often requiring risk management and contingency planning.