QUESTION 13

C1

Assess if the statement below is TRUE (always correct), FALSE (always wrong) or UNCLEAR (meaning correct under some circumstances, wrong under other circumstances to be explicitly defined). Provide an explanation and examples/ illustration of why this is the case. Without an explanation or with an explanation that is off topic or with an explanation that shows serious confusion and misunderstanding, you will receive 0 marks, even if your conclusion was correct.

An item held as an asset by an entity is the liability or equity of another entity.