AASB 101's Definition of Current Assets and Further Discussion at Paragraph

question 56

Multiple Choice

AASB 101's definition of current assets and further discussion at paragraph 59 will:

• A) Simplify the recognition of current assets.
• B) Require greater professional judgement in order to determine an entity's normal operating cycle.
• C) Improve analysts' decisions as ratios which use current assets will use the same information.
• D) Have implications for assessing the liquidity of entities as current assets will now include fewer items.
• E) None of the given answers.

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Definitions:

End Customer

The final consumer of a product or service who does not intend to resell it; the ultimate user in the distribution chain.

Value

The importance, worth, or usefulness of something, perceived by individuals or markets, often influencing decisions and preferences.

Integrated Supply Chain

An Integrated Supply Chain is a coordinated system where all the processes involved in producing and delivering a product to the consumer are linked to reduce costs and improve efficiency and customer satisfaction.

Relationship-based

An approach focusing on building and maintaining positive connections with individuals or entities.