Which Statement in Relation to the Treatment of Expenses Under

question 2

Multiple Choice

Which statement in relation to the treatment of expenses under AASB 101 is correct?

• A) It is optional for an entity with revenue from the sale of goods to disclose cost of sales
• B) Expenses should be classified according to their nature or their function
• C) Expenses are defined exactly in accordance with the Framework
• D) A and B are correct

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Definitions:

Larry Ellison

Co-founder of Oracle Corporation, a major software and technology company, known for his contributions to the development of database management systems.

Achievement

The accomplishment or attainment of personal goals, often recognized by success or honors.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in technology, economics, and society.

Stratification

The arrangement or classification of society into different layers or classes based on factors like wealth, income, race, education, and power.