Dividends Declared After the Balance Date but Before the Financial

question 22

Multiple Choice

Dividends declared after the balance date but before the financial statements are authorised for issue:

• A) meet the criteria for recognition as a liability.
• B) satisfy the criteria for recognition as an expense.
• C) are recognised in the statement of financial position as they meet the definition of equity.
• D) do not meet the AASB 137 criteria of a present obligation.

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Definitions:

Postabsorptive State

State following the absorptive state; blood glucose levels are maintained because of the conversion of other molecules to glucose.

Hydrolysis

A chemical reaction in which water is used to break down the bonds of a particular substance.

Triglycerides

A type of fat found in the blood, sourced from food and the body's production, used for energy or stored.

Acetyl-CoA

A molecule that plays a key role in metabolism and is involved in the synthesis and oxidation of fatty acids.