As Specified in the Conceptual Framework, Which Two Criteria Must

question 3

Multiple Choice

As specified in the Conceptual Framework, which two criteria must be met before a liability can be recognised in the accounting records?

• A) There must have been a past event and there must be a present obligation.
• B) The liability must be beyond a reasonable doubt and the amount of the liability must be able to be recognised reliably.
• C) It must be probable that any future sacrifices associated with the item will flow from the entity and the liability must have a cost or value that can be measured with reliability.
• D) It must be probable that a future sacrifice of economic resources will be required and the liability must be beyond a reasonable doubt.

---

Definitions:

Actual Abilities

The real skills, talents, and competencies that an individual genuinely possesses as opposed to perceived abilities.

Self-discrepancy Theory

A psychological model that explains how the difference between one's actual self and ideal or ought selves affects emotional states.

Ought Self

A component of self-discrepancy theory referring to the representation of the attributes someone believes they should possess, often influenced by societal expectations.

Actual Self

Represents one's perception of who they are at the present moment, encompassing current attributes and qualities.