Assumptions and Estimates Relating to the Statement of Financial Position

question 79

Multiple Choice

Assumptions and estimates relating to the statement of financial position would generally NOT include which of the following?

• A)Profit
• B)Loans raised and repaid
• C)New capital raised and the amount of profit retained
• D)Working capital

---

Definitions:

Credit Terms

The agreement between a buyer and a seller that outlines the payment terms for goods or services, including the due date and any interest or penalties for late payment.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods and shipping costs once the goods leave the seller's premises.

Perpetual Inventory

An inventory management system where updates are made continuously to reflect items added or sold, providing a real-time view of inventory levels.

Freight In

Costs associated with transporting goods into a warehouse or to a business, typically recorded as part of inventory cost.