According to the Conceptual Framework Which Statement Concerning the Recognition

question 2

Multiple Choice

According to the Conceptual Framework which statement concerning the recognition of liabilities is not true?

• A) All liabilities that meet the definition of a liability should be recognised in the accounting records.
• B) A recognition criteria is that it is probable that a sacrifice of future economic benefits will be required.
• C) A recognition criteria is that the amount of the liability must be able to be measured reliably.
• D) Liabilities that do not satisfy the recognition criteria can be recognised in the notes attached to the accounts.

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Definitions:

Open Sentence

A mathematical or logical expression containing one or more variables that can be considered true or false depending on the values of those variables.

Quantified Existential

In logic, a quantified existential statement asserts the existence of at least one object or instance that satisfies a certain condition.

Quantity

A property that exists as magnitude or multitude, used in both mathematics and logic to specify the extent or size of a set or group.

Quality

The grade of something determined by assessing it against comparable items; its excellence extent.