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.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Variable-interval

In the context of psychology, a schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.

Reinforcement Principles

Psychological concepts that involve strengthening a behavior by providing a desirable consequence or removing an undesirable one.