Under International Financial Reporting Standards (IFRS)

question 148

Multiple Choice

Under International Financial Reporting Standards (IFRS)

• A) The cash-basis method of accounting is accepted.
• B) Events are recorded in the period in which the event occurs.
• C) Interim period financial statements are either a calendar year or a fiscal year.
• D) A fiscal year is an accounting time period encompassing less than 12 months.

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Definitions:

Inventory

A list or record of items, usually tangible assets, held by an organization for sale or production purposes, indicating quantity and sometimes value.

Backlog

The accumulation of unfinished work or orders not yet processed, often indicating a delay in production or delivery.

Safety Capacity

Additional capacity reserved to ensure a system can meet unexpected demand spikes, thereby reducing the risk of service or product delivery failure.

Planning Horizon

The future period over which an organization forecasts its operations and plans its strategies.