Under the AASB's Conceptual Framework Liabilities Are Defined As

question 13

Multiple Choice

Under the AASB's Conceptual Framework liabilities are defined as:

• A)future economic benefits under the control of the entity.
• B)future sacrifices of economic benefits that are contingent upon the occurrence of an unusual event.
• C)future sacrifices of profits payable to owners in the form of dividends.
• D)a present obligation of the entity arising from past events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

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Definitions:

Cost-Benefit Constraint

An accounting principle that suggests weighing the cost of providing financial information against the potential benefit that information offers to users.

Cash Paid

The amount of money disbursed by a business for various purposes, including operating expenses, investments, and financing activities.

Interest

The cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage rate.

Discount on Bonds

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.