Liabilities Which Fail the Recognition Criteria and Where the Possibility

question 13

Multiple Choice

Liabilities which fail the recognition criteria and where the possibility of an outflow is remote should:

• A) be recognised as an accrual
• B) be recognised as a provision
• C) be recognised as a contingent liability
• D) not be recognised in the financial statement at all

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Definitions:

Names of States

Reference to the official titles of political or geographic entities that make up a country, such as the states in the United States of America.

Episodic Memory

A form of memory that involves the recollection of specific events, situations, and experiences from one's personal past.

Classically Conditioned

A learning process where a neutral stimulus becomes associated with a meaningful stimulus, causing an automatic response.

First Day

Often refers to the beginning or the initial phase of an event, activity, or period in time, such as the start of school or a job.