Dividends Declared After the Balance Sheet Date but Before the Financial

question 24

Multiple Choice

Dividends declared after the balance sheet date but before the financial statements are authorised for issue:

• A)meet the criteria for recognition as a liability
• B)satisfy the criteria for recognition as an expense
• C)are recognised in the balance sheet as they meet the definition of equity
• D)do not meet the AASB 137 criteria of a present obligation.

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Definitions:

Chromatic

Relating to color or the use of color, often used in the context of visual arts or color theory.

Opponent-Process Theory

A psychological model that explains how humans perceive colors as the brain processes signals from the eyes in an antagonistic manner.

Red

A color at the end of the visible spectrum of light, associated with passion or danger.

Yellow

A primary color perceived when light with a dominant wavelength between roughly 570 and 590 nanometers strikes the retina.