Arbitrage Refers To

question 41

Multiple Choice

Arbitrage refers to:

• A)the ability to make a profit.
• B)the ability to make a risk-free profit resulting from mispriced securities.
• C)settling of disputes between management and shareholders.
• D)none of the given options.

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Definitions:

Warranty Claims

Requests made by customers for the repair or replacement of products under the terms of a warranty agreement.

AASB 137

The Australian Accounting Standards Board standard that deals with Provisions, Contingent Liabilities, and Contingent Assets.

Provisions

Liabilities of uncertain timing or amount, recorded to account for future obligations or potential losses.

Contingent Liabilities

Possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.