Which of the Following Is Not Listed in AASB 101

question 16

Multiple Choice

Which of the following is not listed in AASB 101 to determine if a liability should be classified as current?

• A) If the liability is guaranteed to be settled within 12 months.
• B) If the liability is held primarily for the purpose of being traded.
• C) If the entity does not have an unconditional right to defer settlement of the liability for at least 12 months.
• D) If the liability is expected to be settled in the entity's normal operating cycle.
• E) None of the given answers.

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Annual Net Cash Inflow

The net amount of cash that flows into a company within a one-year period after all expenditures are subtracted.

Residual Value

The estimated amount for which an asset is expected to be sold at the end of its useful life, after deducting expected costs of disposal.

Useful Life

Useful life is the estimated period that an asset is expected to be usable for its intended purpose, influencing depreciation and amortization calculations.