Which of the Following Items, If It Exists, Must Be

question 5

Multiple Choice

Which of the following items, if it exists, must be presented as a line item in the statement of financial position?

• A) Trade and other receivables;
• B) Revenue;
• C) Cost of sales;
• D) Share of profit of associates.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, providing stability in expense planning.

Least-Squares Regression

A statistical technique used to find the line of best fit for a set of data, minimizing the sum of the squares of the differences between the observed and predicted values.

Variable Cost

Costs that vary directly with the level of production output or activity, such as materials and labor directly involved in manufacturing.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, over a specified period.