What Are the Two Criteria, Specified in the Conceptual Framework

question 18

Multiple Choice

What are the two criteria, specified in the Conceptual Framework, that must be met before a liability can be recognised in the accounting records?

• A) 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.
• B) It must be probable that a future sacrifice of economic resources will be required and the liability must be beyond a reasonable doubt.
• C) The liability must be beyond a reasonable doubt and the amount of the liability must be able to be recognised reliably.
• D) There must have been a past event and there must be a present obligation

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Definitions:

Groups

Sets of subjects or items that are classified together based on shared characteristics or for purposes of an experiment or study.

Total N

The total number of observations, subjects, or participants included in a study or experiment.

Degrees Of Freedom

The number of independent pieces of information on which a statistical estimate is based, minus the number of parameters estimated.

Groups

Collections of individuals or items classified together based on common characteristics or for the purpose of analysis.