AASB 101 Presentation of Financial Statements Requires Entities to Use

question 35

True/False

AASB 101 Presentation of Financial Statements requires entities to use the current/non-current method of classifying assets and liabilities in the statement of financial position.

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Definitions:

Substitution

The economic concept whereby consumers replace costlier items with less expensive alternatives, or firms switch between inputs to minimize costs.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, representing equal levels of utility.

Income Effect

Adjustments in the financial earnings of an individual or an economy and the corresponding effect on the quantity of goods or services demanded.

Indifference Curve

A graph showing different combinations of two goods that give a consumer equal satisfaction and utility.