Which of the following is the correct definition of a liability based on the Conceptual Framework? Select one: a. The residual interest in the assets of the entity after deducting all its liabilities. b. A present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefit. C. A present obligation arising from present event from which future economic benefits are expected to outflow from the entity d. A present obligation arising from past event from which future economic benefits are expected to flow to the entity. Which of the following is a key limitation of accounting information? Select one: a. Accounting information in costly. b. Accounting information is objective. c. Accounting information based on current data. d. Accounting information is subjective. According to the Conceptual Framework which of the following is the correct definition of expenses? Select one: a. Decreases in assets or increases in liabilities that result in increases in equity. b. Increases in assets or increases in liabilities that result in decreases in equity. c. Decreases in assets or increases in liabilities that result in decreases in equity. d. Decreases in assets or decreases in liabilities that result in decreases in equity. If profit before tax is $320 000, required rate of return is 15% and the investment is $1 900 000, the calculated residual income is: Select one: a. $1 580 000. b. $35 000. C. 13.2% d. $50 000. What does the accounts receivable turnover ratio (Credit sales / Average Accounts Receivable) tell us? Select one: a. Accounts receivable opening balance b. How often accounts receivable is received c. How many times average accounts receivable are collected d. Accounts receivable closing balance