Which of the Following Is Not Recognised as an Expense

question 6

Multiple Choice

Which of the following is not recognised as an expense in accordance with AASB 102:

• A) Cost of goods sold
• B) Write-downs of inventories to net realisable value
• C) Reversal of write downs to net realisable value
• D) Inventories items used by an entity as components in self-constructed property, plant or equipment

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Definitions:

Dismissal

The act of terminating an employee's position, often due to misconduct, inadequacy, or sometimes organizational restructuring.

Rental Car Company

A business that offers automobiles for rent to the public for short periods.

Damages

A monetary compensation awarded by a court to a person who has suffered loss or injury due to the unlawful act or negligence of another party.

Severance Pay

Compensation given to an employee upon termination of employment, often based on length of service.