A Class of Non-Current Assets as Defined by IAS 116

question 13

Multiple Choice

A class of non-current assets as defined by IAS 116 is a category of non-current assets that:

• A)were all purchased at the same time by the reporting entity.
• B)all have a similar nature or function in the operations of the entity.
• C)are disclosed as a single item without supplementary dissection in the financial report.
• D)all have a similar nature or function in the operations of the entity, and are disclosed as a single item without supplementary dissection in the financial report.

---

Definitions:

Variable Expenses

Costs that fluctuate with changes in production volume or business activity levels, such as raw materials and direct labor.

Fixed Expenses

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Break-even Point

The juncture where the sum of all costs matches the total income, leading to neither a profit nor a loss.

Contribution Margin Ratio

A financial ratio that measures the proportion of revenue remaining after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.