Under IAS 1, Presentation of Financial Statements, Which of the Following

question 15

Multiple Choice

Under IAS 1, Presentation of Financial Statements, which of the following is NOT a criterion in the definition of a current liability?

• A) It is a liability that is expected to be settled in an entity's normal operating cycle.
• B) It is a liability primarily held for the purpose of trading.
• C) It is a liability that does not have the right to defer until 18 months after the balance sheet date.
• D) It is a liability that is expected to be settled within 12 months of the balance sheet date.

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Definitions:

Cash Balance

The amount of cash on hand at a given time, reflecting the liquidity position of an entity, as recorded in the financial statements.

Petty Cash Fund

A small amount of cash kept on hand for making immediate, low-value payments instead of writing checks.

Transportation-In

Costs associated with bringing inventory to a business, which are often added to the purchase price of goods.

Office Supplies

Various everyday items used in offices for tasks such as writing, organization, and communication, including pens, paper, and staplers.