According to the Conceptual Framework Which Statement Concerning the Recognition

question 53

Multiple Choice

According to the Conceptual Framework which statement concerning the recognition of liabilities is incorrect?

• A) A recognition criteria is that it is probable that a sacrifice of future economic benefits will be required.
• B) A recognition criteria is that the amount of the liability must be able to be measured reliably.
• C) All liabilities that meet the definition of a liability should be recognised in the accounting records.
• D) Liabilities that do not satisfy the recognition criteria can be recognised in the notes attached to the accounts.

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Definitions:

Encoding

The processing of information so it can be stored in the brain.

Retrieval

The act of accessing stored information when it is needed.

Psychology Exam

An assessment designed to test knowledge, understanding, and application of psychological theories and principles.

Neural Code

The manner in which information is represented and communicated through neural signals within the nervous system.