Which Approach Is Contained in IAS 1/AASB 101, Requiring All

question 24

Multiple Choice

Which approach is contained in IAS 1/AASB 101, requiring all income and expenses to be included in the determination of profit?

• A) the operating approach.
• B) the comprehensive profit approach.
• C) the reporting method approach.
• D) the all-inclusive profit approach.

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Definitions:

Revenues

The income generated from normal business operations, typically from the sale of goods and services to customers.

Expenses

The depletion or expenditure of resources during a company's operational activities aimed at creating income.

Net Income

The ultimate earnings of a company, determined by subtracting all operational costs and governmental levies from its revenue.

Stockholders

Individuals or entities that own shares of stock in a corporation, thereby owning a portion of the company.