In the Case of a Fixed Price Contract,AASB 111 Specifies

question 39

Multiple Choice

In the case of a fixed price contract,AASB 111 specifies four conditions that must all be met in order for the percentage-of-completion method to be applied.These conditions include:

• A) Costs related to the contract can be clearly identified and measured reliably.
• B) It is probable that the economic benefits arising from the contract will flow to the contractor.
• C) The entity commissioning the work has a good credit rating and is able to pay its debts.
• D) Costs related to the contract can be clearly identified and measured reliably and it is probable that the economic benefits arising from the contract will flow to the contractor.

Recognize the implications of changes in financial ratios over time.

Understand the relationship between financial analysis and business decision-making processes.

Develop skills in interpreting the effects of financial decisions on ratios and overall company performance.

Become adept at assessing short-term creditor perspectives through current position analysis.

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Definitions:

Intracellular Thirst

A type of thirst caused by the decrease in the volume of fluid inside cells, typically as a result of high salt intake or other factors affecting cellular water.

Physiological Needs

The basic, fundamental needs of humans necessary for survival, such as food, water, shelter, and sleep, as described by Maslow's hierarchy of needs.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by a hierarchy of needs starting from basic physiological needs to self-actualization.

Ventromedial Hypothalamus

A region of the hypothalamus in the brain that regulates hunger, satiety, and other functions related to feeding behavior.