The Definition of Earnings Contained in AASB 133

question 43

Multiple Choice

The definition of earnings contained in AASB 133:

• A) Net profit attributable to ordinary shareholders of the parent entity net of preference dividends.
• B) Net profit excluding earnings attributable to minority interests and is measured before the costs of servicing equity other than dividends on ordinary shares are deducted.
• C) Net profit excluding earnings attributable to minority outside equity interests.
• D) Excludes any cumulative preference dividends not paid in the period and is measured before the costs of servicing equity other than dividends on ordinary shares are deducted.
• E) None of the given answers.

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Definitions:

Sunk Cost

Past expenses that have already been incurred and cannot be recovered or altered.

Nonrefundable Ticket

A type of ticket purchase that cannot be returned for a refund. These tickets generally offer a cost advantage but less flexibility.

Wear and Tear

The damage or deterioration resulting from ordinary use over time.

MC Curves

also known as Marginal Cost Curves, represent the additional cost incurred in producing one more unit of a good or service.