A Company Incurs Significant Costs in Relation to a Speculative

question 48

Multiple Choice

A company incurs significant costs in relation to a speculative mining project that intends to turn rocks into gold.In accordance with the AASB's Conceptual Framework,the costs of this project would be an:

• A)expense because there is little probability that future economic benefits will eventuate.
• B)expense because the recognition criteria for an asset is not satisfied.
• C)asset because the definition and recognition criteria for assets are satisfied.
• D)asset because the company will control the future economic benefits.

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Definitions:

Liaison

A role or person that serves as a link or a coordination point between different departments or organizations to ensure effective communication and coordination.

National Culture

The set of norms, beliefs, customs, and values shared by the population of a sovereign nation.

Managerial Role

The specific duties, responsibilities, and functions that an individual in a management position is expected to perform.

Spokesperson

An individual designated to speak on behalf of an organization or group, often to convey its views to the public or media.