Current Assets,as Defined in AASB 101,are Those That

question 16

Multiple Choice

Current assets,as defined in AASB 101,are those that:

• A) are expected to be realised within the normal course of the operating cycle
• B) are held primarily for the purpose of being traded
• C) are expected to be realised within 12 months after the end of the accounting period
• D) any of the above

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Definitions:

Equivalent Unit

A measure used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

Materials

The raw inputs or components that are used in the manufacturing process to create finished goods.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of fully completed units.

First-in

A term often used in inventory management that refers to goods sold or used in the same order as they were bought or produced.