Which of the Following Is True Regarding the Provisions of International

question 74

Multiple Choice

Which of the following is true regarding the provisions of International Accounting Standard No.39,"Financial Instruments: Recognition and Measurement (amended 2005) ?

• A) IAS No.39 applies only to financial assets.
• B) IAS No.39 applies only to financial liabilities.
• C) IAS No.39 applies only to accounting for derivatives and loans and receivables.
• D) IAS No.39 applies to both financial assets and financial liabilities.

---

Definitions:

Aggregate Demand

Refers to the total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Short-Run Aggregate Supply Curve

Represents the relationship between the total supply of goods and services produced by an economy and the price level for those goods and services in the short run.

Potential Output

The maximum output an economy can produce without causing inflation when all resources are fully employed.

Aggregate Demand Curve

A curve that illustrates the total demand for all goods and services in an economy at various price levels, assuming all other factors remain constant.