AASB 101 Indicates That When Presenting a Statement of Financial

question 11

Multiple Choice

AASB 101 indicates that when presenting a statement of financial position,an entity should:

• A) present all assets and liabilities as two groups and disclose their specific classifications in notes as per paragraphs 57-67.
• B) only present items on the basis of liquidity if that information is reliable and more relevant. If this is the case, assets should be discretely grouped into current and non-current classifications.
• C) present items broadly in order of liquidity if that information is reliable and more relevant than following paragraphs 66-76.
• D) always classify items as current and non-current.

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Definitions:

Mark-up

An enhancement to the price at which goods are bought to include expenses and profit.

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.

Mark-up

The uplift on the initial cost of items to cover business overheads and secure earnings.

Construction Purchased Saws

The acquisition of saws for the purpose of using them in construction projects, considered a capital expense.