Liabilities Which Fail the Recognition Criteria and Where the Possibility

question 13

Multiple Choice

Liabilities which fail the recognition criteria and where the possibility of an outflow is remote should:

• A) be recognised as an accrual
• B) be recognised as a provision
• C) be recognised as a contingent liability
• D) not be recognised in the financial statement at all

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Simplify

The process of making something less complicated or easier to understand, often applied in mathematical expressions or complex ideas.

GST Rate

GST Rate refers to the tax rate applied to the sale of goods and services within a country.

Property

A physical or intangible asset owned by an individual or corporation.

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The amount of funds invested in a particular market sector or investment, representing the level of risk taken.