In the Case of Classifying a Liability as Current or Non-Current,what

question 61

Multiple Choice

In the case of classifying a liability as current or non-current,what approach does IAS 1 require if there is no clearly identifiable operating cycle?

• A)The most common length of operating cycle for other entities in a comparable industry must be used.
• B)The operating cycle of the event that gave rise to the creation of the liability must be used as the basis for determining the liability's operating cycle.
• C)The 12-month period from the reporting date must be used.
• D)The average operating cycle length over all operations of the entity must be used.

---

Definitions:

Entrance Fees

Entrance fees are charges that individuals must pay to gain access to a facility, event, or organization.

Price Discrimination

A pricing strategy where identical or similar goods or services are sold at different prices by the same provider in different markets or to different segments of consumers.

Producer Surplus

The difference between what producers are willing to sell a product for and the actual price they receive, representing extra benefit or profit for producers.

Single-Price Monopolist

A monopolist that offers its product to all consumers at the same price.