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Questions and Answers
What is the primary purpose of holding a liability that is considered as held for trading?
What is the primary purpose of holding a liability that is considered as held for trading?
- For selling or repurchasing in the near term (correct)
- For long-term investment
- For hedging purposes
- For research and development
What is the normal operating cycle of an entity that has an account payable due to be paid in 15 months?
What is the normal operating cycle of an entity that has an account payable due to be paid in 15 months?
- 20 months
- 24 months
- 12 months
- 18 months (correct)
Which of the following is NOT a criterion for a liability to be considered as held for trading?
Which of the following is NOT a criterion for a liability to be considered as held for trading?
- It is acquired for the purpose of selling or repurchasing it in the near term
- It is a long-term investment (correct)
- It is part of a portfolio of identified financial instruments
- There is evidence of recent actual pattern of short-term profit-taking
What is the classification of a financial liability at FVTPL that is irrevocably designated as such on initial recognition?
What is the classification of a financial liability at FVTPL that is irrevocably designated as such on initial recognition?
Which of the following is an example of a liability that is usually classified as current?
Which of the following is an example of a liability that is usually classified as current?
What is the purpose of classifying liabilities as current or non-current in the statement of financial position?
What is the purpose of classifying liabilities as current or non-current in the statement of financial position?
When is a liability classified as current?
When is a liability classified as current?
What is the normal operating cycle of an entity?
What is the normal operating cycle of an entity?
Which of the following liabilities is classified as current even if it will be settled beyond 12 months after the reporting date?
Which of the following liabilities is classified as current even if it will be settled beyond 12 months after the reporting date?
What is the criterion for classifying a liability as non-current?
What is the criterion for classifying a liability as non-current?
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