Which of the Following Provisions Satisfy the Requirements to Be

question 42

Multiple Choice

Which of the following provisions satisfy the requirements to be recognised as a liability under AASB 137?

• A) Provisions for repairs and overhauls.
• B) Provisions for warranties.
• C) Provisions for maintenance.
• D) Provisions for refurbishment costs.
• E) All of the given answers.

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Definitions:

Nominal Rate

The interest rate before adjustments for inflation, indicating the gross rate of return on an investment.

Holding-Period Return

The total return received from holding an asset or portfolio over a specified period, accounting for all income and capital gains.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash payments or additional shares.