According to the Conceptual Framework Which Statement Concerning the Recognition

question 2

Multiple Choice

According to the Conceptual Framework which statement concerning the recognition of liabilities is not true?

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

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Definitions:

Point Estimate

A single value or statistic that is used to estimate the value of a population parameter.

Population Proportions

The fraction or percentage of a population that exhibits a specific characteristic or attribute.

Standard Error

The standard deviation of the sampling distribution of a statistic, providing a measure of the precision of the estimated population parameter.

Interval Estimate

An estimate of a population parameter that specifies a range of possible values within which the parameter is expected to lie, often expressed with a level of confidence.