Which of the Following Does Not Result in the Recognition

question 25

Multiple Choice

Which of the following does not result in the recognition of a provision in the balance sheet?

• A)the expected future warranty claims in respect of goods sold during the reporting period
• B)a final dividend declared by directors after the reporting date
• C)the amount of employee annual leave accrued but not taken at reporting date
• D)the company has been held liable for damages for breach of copyright but the court is yet to determine the amount of damages payable to the copyright owner.

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Definitions:

International Markets

Marketplaces that extend beyond national borders, where businesses can trade goods and services across countries.

Market Development

A growth strategy where a business seeks to sell its existing products or services into new geographic areas or markets to attract new customers.

Yum! Brands

A multinational corporation that operates or licenses Taco Bell, KFC, Pizza Hut, and other fast-food restaurant chains worldwide.

Market Penetration

A strategy to increase sales of existing products or services on current markets, thereby increasing the market share.