Where the Entity Presents Current Assets Separately from Non-Current Assets

question 41

Multiple Choice

Where the entity presents current assets separately from non-current assets and current liabilities separately from non-current liabilities what disclosure is the entity required to make under AASB 101?

• A) the reason for selecting that style of presentation
• B) the length of its operating cycle if it has clearly been identified as being greater than 12 months
• C) the net amount of working capital
• D) a list of the assets and liabilities in the order of their liquidity

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Definitions:

Cost-volume-profit Analysis

An accounting technique that analyzes how changes in costs, sales volume, and price affect a company's profit.

Contribution Margin Ratio

The contribution margin ratio quantifies the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs and generate profit.

Variable Costs

Costs that change in proportion to the level of activities or volume of production in a business.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume.