Dividends Declared After the Balance Date but Before the Financial

question 5

Multiple Choice

Dividends declared after the balance date but before the financial statements are authorised for issue:

• A) meet the criteria for recognition as a liability
• B) satisfy the criteria for recognition as an expense
• C) are recognised in the Statement of Financial Position as they meet the definition of equity
• D) do not meet the AASB 137 criteria of a present obligation.

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Definitions:

Change in Demand

A shift in the demand curve, due either to changes in consumer preferences, income levels, prices of related goods, or other factors, affecting the quantity demanded at any given price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level, within a specific time frame.

Law of Supply

An economic principle stating that as the price of a good or service increases, the quantity supplied of that good or service also increases, and vice versa, all else being equal.

Law of Demand

A principle that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers.