In the Case of Classifying a Liability as Current or Non-Current,what

question 15

Multiple Choice

In the case of classifying a liability as current or non-current,what approach does AASB 101 require if there is no clearly identifiable operating cycle?

• A) The most common length of operating cycle for other entities in a comparable industry must be used.
• B) The operating cycle of the event that gave rise to the creation of the liability must be used as the basis for determining the liability's operating cycle.
• C) The 12-month period from the reporting date must be used.
• D) The average operating cycle length over all operations of the entity must be used.

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Definitions:

Units Per Period

A metric that indicates the quantity of production, sales, or any other measurable activity within a specified timeframe.

Marginal Product

The increase in output that results from employing one more unit of a specific input, holding all other inputs constant.

Bushels

A unit of volume that is used in the United States for measuring agricultural products, such as grains.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input used, holding all other inputs constant.