A Liability Should Only Be Recognised in the Financial Statements

question 34

Multiple Choice

A liability should only be recognised in the financial statements when:

• A) (i)and (ii)only
• B) (i)and (iii)only
• C) (ii)and (iii)only
• D) (i), (ii)and (iii)

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Definitions:

Compliance Costs

Expenditures incurred by an organization to ensure it is abiding by relevant laws, regulations, and standards.

Federal Sentencing Guidelines

A set of rules that establish uniform sentencing policies for individuals and organizations convicted of federal crimes in the United States.

Supreme Court

The highest judicial court in a country or state, which has the ultimate judicial authority to interpret and apply the law.

Recommendations

Advice or suggestions aimed at guiding decisions or actions.