The IPSASB Has Issued a Conceptual Framework Applicable For

question 5

Multiple Choice

The IPSASB has issued a conceptual framework applicable for:

• A)both non-profit and for-profit entities.
• B)non-profit entities.
• C)for‐profit entities.
• D)public sector entities.

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Definitions:

Accommodation Maker

A person who signs a loan instrument to help someone obtain credit but who has no direct benefit from the loan.

Liable

Subject to legal obligation, where an individual or entity is responsible for fulfilling certain duties or compensating for harm caused to others.

Conditions Precedent

Specific conditions that must be fulfilled before a contract or agreement becomes legally binding.

Negotiable Instrument

An official written promise to pay a specified amount of money, which can be demanded at any time or payable at an agreed upon time, identifying the payer on the document.