Profit Is Not Defined in the AASB Framework

question 43

Multiple Choice

Profit is not defined in the AASB Framework:

• A) because it is simply the difference between income and expenses, both of which are defined.
• B) as it is an intangible item and therefore cannot be properly defined.
• C) because different measurement methods will give different profits, therefore there cannot be one definition.
• D) as it is clearly defined under AASB 101.

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Definitions:

Strictly Liable

Being legally responsible for damages or harm caused, regardless of negligence or intent.

Manufacturing Defects

Flaws or errors in a product resulting from the manufacturing process which potentially harm consumers or differ from intended design.

Product Safety

The assurance that a product will not cause harm to consumers or users under normal or foreseeable usage conditions.

Manufacturing Defect

Refers to a flaw or imperfection in a product that occurs during its production, potentially making it unsafe or unusable.