In Accordance with IASB Conceptual Framework Which of the Following

question 11

Multiple Choice

In accordance with IASB Conceptual Framework which of the following is consistent with the definition of expenses?

• A) decreases in economic benefits during the accounting period in the form of outflows other than those relating to distributions to equity participants
• B) increases in economic benefits during the accounting period in the form of inflows or enhancement of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants
• C) decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants
• D) All of the given answers are correct.

---

Definitions:

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life, important in calculating depreciation.

Depreciation Expense

The distribution of a tangible asset's cost over its lifespan, treating it as an expenditure.

Double Declining-balance

A method of accelerated depreciation that doubles the straight-line depreciation rate.

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during a fiscal period.