Some Provisions Traditionally Recorded by Entities May Not Be Considered

question 64

Multiple Choice

Some provisions traditionally recorded by entities may not be considered liabilities under the AASB Framework because:

• A) their amounts are not considered probable.
• B) they do not involve a future sacrifice of economic benefits.
• C) the identity of the external party to whom the present obligation is owed is unknown.
• D) there is no entity other than the reporting entity involved in the present obligation as a result of past transactions or other past events.

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Definitions:

Hat

A head covering, often with a brim and sometimes signifying a particular role or status.

Ball Cap

A type of hat with a rounded crown and a stiff bill projecting in front, often worn for casual occasions and sporting events.

Abstract

A brief summary of a research article, thesis, review, or other long report on a subject or project.

Concrete

Existing in a material or physical form; not abstract.