According to AASB 132 Financial Instruments: Presentation, Which of the Following

question 21

Multiple Choice

According to AASB 132 Financial Instruments: Presentation, which of the following items would be regarded as a financial liability?

• A) Ordinary shares held in another entity.
• B) A contract that is a non-derivative for which the entity is obliged to deliver a variable number of its own equity instruments.
• C) A contractual right to exchange under potentially favourable conditions, an option to purchase shares below the market price.
• D) The right of a depositor to obtain cash from a financial institution with which it has deposited cash.

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Definitions:

Overapplied Overhead

Occurs when the allocated overhead costs exceed the actual overhead costs incurred.

Net Operating Income

Represents the profit earned from a company's core business operations, excluding expenses and revenues from non-operating activities.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, typically used when the products being produced are sufficiently different from each other.

Work in Process Inventory

The total value of all partially completed goods or work that is not yet finished within a production process.