Which of the Following Is NOT a Reason as to Why

question 2

Multiple Choice

Which of the following is NOT a reason as to why the IASC felt that agriculture was an industry that needed its own industry specific standard?

• A) The specific exclusion of assets related to agricultural activity from other standards.
• B) Agriculture was considered to be an emerging industry at that time.
• C) Accounting guidelines for agricultural activity previously developed by national standard setters had been piecemeal.
• D) The nature of agricultural activity had created uncertainty or conflicts when applying traditional accounting models.

---

Definitions:

Credit Balance

A situation where the total credits in an account exceed the total debits.

Aging

A method used in accounting to categorize and assess the financial health of receivables or inventory based on the period they have been outstanding or in stock, respectively, to identify potential losses or risks.

Accounts Receivable

Liabilities of customers to a business entity for services or products provided but still awaiting payment.

Bad Debts Expense

An estimated expense that represents accounts receivable that a company does not expect to collect.