Profit Is Not Defined in the AASB Framework

question 3

Multiple Choice

Profit is not defined in the AASB Framework:

• A) Because it is simply the difference between income and expenses, both of which are defined.
• B) As it is an intangible item and therefore cannot be properly defined.
• C) Because different measurement methods will give different profits, therefore there cannot be one definition.
• D) As it is clearly defined under AASB 101.
• E) None of the given answers.

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Definitions:

Universal Causality

The principle that every event or state of affairs is determined by preceding events according to consistent laws.

David Hume

An 18th century Scottish philosopher, famous for his skepticism and empiricism.

Systematic Understanding

Comprehensive comprehension structured through organized and logical reasoning, often used in scientific and philosophical contexts.

Knowledge

Expertise or know-how developed through learning or direct involvement; a grasp of a subject matter, whether through academic means or real-world practice.