Which of the Following Will Satisfy the Definition of a Constructive

question 7

Multiple Choice

Which of the following will satisfy the definition of a constructive liability,as outlined in the IASB Framework?

• A) A decision by management to carry out maintenance over the next two years
• B) A public offer to repair a defective good, even if it is out of warranty
• C) A parent company's guarantee to meet the debts of a subsidiary entity if the subsidiary itself cannot pay them
• D) All of the given options are correct

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Definitions:

Esophagus

The muscular tube that transports food from the mouth to the stomach by sequential muscle contractions.

Acetaminophen

A medication used to reduce pain and fever, known for its minimal anti-inflammatory properties.

Liver

A vital organ located in the upper right quadrant of the abdomen, involved in detoxifying substances, producing bile, and metabolizing nutrients.

Visceral Peritoneum

Also known as the serosa, the outermost layer of the abdominal organs that secretes serous fluid to keep the organs from sticking to each other.