AASB 101's Definition of Current Assets and Further Discussion at Paragraph

question 61

Multiple Choice

AASB 101's definition of current assets and further discussion at paragraph 59 will:

• A) simplify the recognition of current assets.
• B) require greater professional judgment in order to determine an entity's normal operating cycle.
• C) improve analysts' decisions, as ratios that use current assets will use the same information.
• D) have implications for assessing the liquidity of entities as current assets will now include fewer items.