Which of the Following Is Not Listed in AASB 101

question 76

Multiple Choice

Which of the following is not listed in AASB 101 to determine if a liability should be classified as current?

• A) If the liability is guaranteed to be settled within 12 months.
• B) If the liability is held primarily for the purpose of being traded.
• C) If the entity does not have an unconditional right to defer settlement of the liability for at least 12 months.
• D) If the liability is expected to be settled in the entity's normal operating cycle.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity, reflected in its cash flows.

Principal Collection

refers to the portion of payments received that goes towards reducing the outstanding principal balance of a loan.

Equipment Purchase

Equipment purchase refers to the acquisition of physical assets, such as machinery or tools, necessary for a company to operate and produce goods or provide services.

Operating Activities

Transactions and events that relate to the core business functions, such as receipts from sales of goods and services, payments to suppliers, and salaries to employees.