Dividends Declared After the Reporting Period

question 21

Multiple Choice

Dividends declared after the reporting period:

• A)meet the criteria for recognition as a liability.
• B)satisfy the criteria for recognition as an expense.
• C)are recognised in the statement of financial position as they meet the definition of equity.
• D)do not meet the AASB 132 recognition criteria for liabilities.

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Definitions:

Profit-maximizing

The method or approach of modifying production and sales to maximize profits.

Output

The total amount of goods or services produced by a company, industry, or economy.

Persimmon Orchard

A Persimmon Orchard is a plantation or area specifically dedicated to growing persimmon trees, which bear the edible fruit known as persimmons.

Bushels

A unit of volume that is used primarily in the United States to measure quantities of agricultural products.