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:

Cost Equation

An equation that reflects the relationship between costs, production volume, and other factors, often used for predicting costs at various levels of activity.

Two Points

In finance, two points refer to a one percent change in the face value of a financial instrument like a loan or mortgage, often related to fees or interest rates.

Variable Cost Per Unit

The cost that changes with the level of output or production, expressed on a per unit basis.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales volumes.