In Accordance with AASB Framework Which of the Following Is

question 15

Multiple Choice

In accordance with AASB framework which of the following is consistent with the definition of expenses?

• A)Expenses are decreases in economic benefits during the accounting period in the form of outflows other than those relating to distributions to equity participants.
• B)Expenses are increases in economic benefits during the accounting period in the form of inflows or enhancement of assets or incurrences of liabilities that result in decreases in equity,other than those relating to distributions to equity participants.
• C)Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity,other than those relating to distributions to equity participants.
• D)All of the given answers.
• E)None of the given answers.

---

Definitions:

Modigliani and Miller

Two economists who introduced groundbreaking theories on the irrelevance of capital structure for a company's value and the dividend policy irrelevance in an ideal market.

Total Excess

The amount by which the total returns on an investment exceed the benchmark or guaranteed returns.

Bogey Portfolio

A benchmark or target portfolio with which the performance of an investment portfolio is compared.

Managed Portfolio

A collection of investments overseen by a financial professional who makes buy and sell decisions.