Which of the Following Is Excluded from the Scope of AASB

question 20

Multiple Choice

Which of the following is excluded from the scope of AASB 139?

• A) a lease renewal option within a lease agreement.
• B) a contract for contingent consideration receivable in a business combination covered by AASB 3
• C) an investment in a controlled entity accounted for at cost in the investor's separate consolidated financial statements.
• D) Loan commitments that cannot be settled in cash or another financial instrument.

Understand the principles of least-cost combination of resources and its effects on profit maximization.

Comprehend the decision-making process regarding employment of resources based on their marginal costs and marginal revenue products.

Learn the marginal productivity theory of resource demand and its implications for income distribution.

Understand the conditions under which hiring additional labor is cost-effective or profit-maximizing.

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Definitions:

Economy

A system involving the production, distribution, and consumption of goods and services within a society or geographical area.

Government Intervention

Involvement by the government in the market to influence the allocation of resources and distribution of goods.

Efficient Results

Outcomes in which resources are allocated in a way that maximizes the net benefits to society.

Equitable Outcome

An equitable outcome is a fair and impartial distribution of resources or opportunities among all members of a community or society, taking into account the needs and contributions of each individual.