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:

Gambling Instinct

An inclination or propensity to take risks in the hope of gaining something, commonly observed in gambling contexts.

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth.

Nurture

The influence of external factors after conception, e.g., the product of exposure, experience, and learning on an individual.

Instinct

An ingrained behavior observed in animals that consistently occurs in reaction to designated stimuli.