Which of the Following Items, If It Exists, Must Be

question 5

Multiple Choice

Which of the following items, if it exists, must be presented as a line item in the statement of financial position?

• A) Trade and other receivables;
• B) Revenue;
• C) Cost of sales;
• D) Share of profit of associates.

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Definitions:

Activity Level

A measure of the volume of production or operations, which can impact costs and profitability within a business.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Variances

The difference between planned or expected financial outcomes and the actual results, often analyzed in budgeting and cost management.

Performance Reports

Documents that compare actual work performance against planned or expected outcomes.