Which of These Items Would Not Meet the Definition of a Liability

question 32

Multiple Choice

Which of these items would not meet the definition of a liability under the IASB Framework and the current accounting standards?
i.A provision for uninsured losses
ii.An unconditional purchase obligation
iii.Accrued long service leave.

• A)i,iii
• B)i,ii,
• C)i.ii,iii
• D)i,

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Definitions:

Minor Stressors

Everyday, small-scale events or situations that cause stress, often due to accumulation or frequency.

Accurate Appraisals

The process of assessing or judging something in a correct and precise manner.

Stress

A psychological and physical response to a demand, challenge, or threat, characterized by feelings of tension and anxiety.

Optimal Level

The most favorable degree or condition of something for achieving the best results or maximum efficiency.