A Liability Should Only Be Recognised in the Financial Statements

question 16

Multiple Choice

A liability should only be recognised in the financial statements when: (i) reserves have been set aside by the entity
(ii) the amount can be measured reliably
(iii) it is probable that the future sacrifice of economic benefits will be required.

• A) (i)and (ii)only
• B) (i)and (iii)only
• C) (ii)and (iii)only
• D) (i),(ii)and (iii).

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Definitions:

Theoretical Traditions

Refer to established and widely recognized frameworks or schools of thought within academic disciplines used to understand phenomena.

Sociology

The study of society, social institutions, and social relationships, examining how humans interact and how these interactions shape cultures and social structures.

Axes

Refers to imaginary lines used to determine positions or movements in mathematical and physical contexts, or to various categories or dimensions used for analysis in social sciences.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory.