Under AASB 132,preference Shares That Must Be Redeemed by the Issuer

question 14

Multiple Choice

Under AASB 132,preference shares that must be redeemed by the issuer for a fixed or determinable amount at a fixed or determinable future date will be classified as:

• A) liability
• B) equity
• C) part liability, part equity
• D) cannot tell

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Definitions:

Defect

A flaw or imperfection in a product, process, or system that fails to meet specified criteria.

Proportion

A statistical measure that indicates the fraction of the total that possesses a certain attribute or characteristic.

Relative Risk

A measure in epidemiology that quantifies the risk of a certain event happening in one group compared to its occurrence in another group.

Defective

Pertaining to a product or item that fails to meet the quality or performance standards, often due to manufacturing errors or flaws.