Which of the Following Statement(s)is/are Correct

question 56

Multiple Choice

Which of the following statement(s) is/are correct?

• A) Entities engage in extractive operations should adopt AASB 116 "Property, Plant and Equipment" in the amortisation of capitalised costs.
• B) Entities engage in extractive operations should adopt AASB 6 in accounting for its inventories.
• C) The obligations of entities engage in extractive operation with respect to restoration costs are outlined in AASB 6.
• D) All of the given answers.
• E) Entities engage in extractive operations should adopt AASB 116 "Property, Plant and Equipment" in the amortisation of capitalised costs and entities engage in extractive operations should adopt AASB 6 in accounting for its inventories.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find net cash provided by operating activities.

Net Cash Flows

The difference between a company's cash inflows and outflows within a specific period.

Decrease in Accounts Receivable

A reduction in the amount of money owed to a business by its customers for goods or services delivered on credit.

Non-Operating Gains

Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.