Accounting for Trade Payables Quiz
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Questions and Answers

How should a financial liability/payable through profit or loss be subsequently measured after initial recognition?

  • At market value
  • At fair value (correct)
  • At historical cost
  • At amortized cost using the effective interest method

    • What is the definition of payables according to IFRS 9?

  • Obligation of an enterprise to transfer economic resources to other entities in the future due to past transactions (correct)
  • Recognition of financial instruments
  • Only related to trade accounts payable
  • Obligation of an enterprise to transfer financial resources to other entities immediately

    • When is a payable considered a financial liability?

  • When the entity receives an invoice for the payable
  • When the payment is made for the payable
  • When the payable is recorded in the books
  • When the entity becomes party to the contractual provisions of the instrument (correct)

    • What is the initial measurement of a financial liability at initial recognition?

    <p>At its fair value</p> Signup and view all the answers

    Which of these is a common example of payables?

    <p>Accounts payable</p> Signup and view all the answers

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