According to AASB 101 an Entity Will Classify a Liability

question 6

Multiple Choice

According to AASB 101 an entity will classify a liability as non-current when:

• A)it holds the liability mainly for trading
• B)it expects to settle the liability outside its normal operating cycle
• C)the entity does not have an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date
• D)the liability is due to be settled within 12 months after the reporting date.

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Definitions:

Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, aimed at reducing anxiety or preventing a dreaded event.

Obsessions

Persistent, unwanted thoughts that cause distress and are difficult to control.

Antisocial Personality

A disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Bipolar Disorder

A mental condition defined by dramatic mood oscillations, including intense emotional peaks (mania or hypomania) and troughs (depression).