Question
Which of the following is incorrect about liabilities according to the conceptual framework? For the liability definition to be met, there needs to be a
Which of the following is incorrect about liabilities according to the conceptual framework?
| "For the liability definition to be met, there needs to be a present obligation." | ||
| "An obligation may arise based on notions of equity and fairness, referred to as equitable obligation. " | ||
| "For an obligation to exist, it has to be a legal obligation." | ||
| "An obligation may arise based on customary practices, published policies or particular statements, referred to as constructive obligation, if the entity has no practical ability to avoid complying." |
"According to the new conceptual framework, which of the following statements is true?"
| Enhancing qualitative characteristics distinguish more useful information from less useful information. | ||
| All of the statements are true. | ||
| The enhancing qualitative characteristics enhance the decision-usefulness of financial reporting information that is relevant and faithfully represented. | ||
| "The enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability. " |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started