Under IAS 1, Presentation of Financial Statements, Which of the Following

question 15

Multiple Choice

Under IAS 1, Presentation of Financial Statements, which of the following is NOT a criterion in the definition of a current liability?

• A) It is a liability that is expected to be settled in an entity's normal operating cycle.
• B) It is a liability primarily held for the purpose of trading.
• C) It is a liability that does not have the right to defer until 18 months after the balance sheet date.
• D) It is a liability that is expected to be settled within 12 months of the balance sheet date.

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Definitions:

Efficiency Variance

A measure in cost accounting used to assess the difference between the actual input used in production and the standard input expected to be used, for cost control purposes.

Direct Labour Hour

A measure of labor directly involved in manufacturing or production, calculated by the amount of time workers spend on specific tasks.

Fixed Overhead

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Budget Variance

The difference between the budgeted or planned amounts and the actual amounts incurred.