Which of the Following Criteria, Specified in the Conceptual Framework

question 46

Multiple Choice

Which of the following criteria, specified in the Conceptual Framework, must be met before a liability can be recognised in the accounting records?
I. The liability is beyond a reasonable doubt.
II. It is probable that the future sacrifices associated with the item will occur.
III. The liability has a cost or value that can be measured with reliability.

• A) I and II
• B) II and III
• C) I and III
• D) I, II and III

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Definitions:

Exclusive Remedy

A legal principle that limits the aggrieved party to only one specific form of compensation or resolution in a contract or statutory claim.

Repair Or Replacement

This involves fixing damaged goods or substituting them with new or functioning ones as a part of warranty service or customer satisfaction practices.

Measure Of Recovery

The method or formula used to determine the amount of compensation owed to a party for loss or damage.

Values Of Goods

The worth or monetary equivalent of a product or commodity, influenced by factors such as quality, demand, and availability.