Under AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the Appropriate

question 24

Multiple Choice

Under AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the appropriate accounting treatment for future operating losses is to:

• A) determine a reasonable estimate of the cost and provide for the future liability;
• B) determine the cost and charge it directly against retained earnings;
• C) not recognise such items in the financial statements;
• D) measure on the basis of estimated future cash flows.

Understand the use of zero balance accounts and their benefits.

Learn metrics for measuring the efficiency of credit and collection management, like the average collection period.

Explore inventory management concepts relevant to financial management, including EOQ and carrying costs.

Calculate the operating cycle of a business.

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Definitions:

Bottom Line

The final profit or loss of a business after all expenses have been deducted from the revenues, also used metaphorically to mean the ultimate outcome.

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Online platforms that allow users to create, share content, and participate in social networking.

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Professionals who are engaged in promoting and selling products or services, including market research and advertising.

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Organizations engaged in commercial, industrial, or professional activities with the goal of earning a profit.