Some Provisions Traditionally Recorded by Entities May Not Be Considered

question 57

Multiple Choice

Some provisions traditionally recorded by entities may not be considered liabilities under the AASB Framework because:

• A) Their amounts are not considered probable.
• B) They do not involve a future sacrifice of economic benefits.
• C) The identity of the external party to whom the present obligation is owed is unknown.
• D) There is no entity other than the reporting entity involved in the present obligation as a result of past transactions or other past events.
• E) None of the given answers.

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Definitions:

Ribosomal RNA

RNA molecules that form the core of the ribosome, playing a crucial role in the synthesis of proteins.

Transfer RNA

A type of RNA molecule that helps decode a messenger RNA (mRNA) sequence into a protein during protein synthesis.

Messenger RNA

A type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.

Primary mRNA Transcript

The initial, unmodified RNA transcript produced by transcription from DNA.