Under AASB 101 Additional Line Items,headings and Subtotals

question 20

Multiple Choice

Under AASB 101 additional line items,headings and subtotals:

• A) are precluded as they provide unnecessary information that may confuse the user.
• B) shall be presented on the face of the statement when such presentation is relevant to an understanding of the entity's financial performance.
• C) shall be presented on the face of the statement when such items can be measured reliably and it is probable these events will occur.
• D) will only be included in the notes to the income statement if they are relevant to an understanding of the entity's financial performance.

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Definitions:

Average Product

The output per unit of a particular input, calculated by dividing total product by the quantity of that input.

Marginal Product

The increase in output that arises from an additional unit of input.

Customers Served

The number or segment of clients to whom a business has provided goods or services.

Marginal Products

The additional output that results from using one more unit of a particular input, holding all other inputs constant.