Which of the following statements in relation to IAS 19/AASB 119 Employee Benefits is not true?

Select one:

a.Wages and salaries, annual leave and sick leave are to be reported at their nominal amounts.

b.The controls that need to be provided when operating a payroll system are outlineD.

c.The principles for recognition of employee benefits as expenses or liabilities are consistent with those in the Conceptual Framework.

d.Employee benefits include wages and salaries, non-monetary fringe benefits, annual leave and superannuation.

Under IAS 18/AASB 118 interest income should be recognised:

Select one:

a.at the end of the loan perioD.

b.when the contract for the loan is signeD.

c.at the date of agreement.

d.proportionately over time, as the interest is earneD.

Under the Conceptual Framework, which of the following is not a characteristic of a liability?

Select one:

a.It must be a legal debt.

b.It is expected to result in an outflow of economic resources.

c.It must result from a past transaction or event.

d.It must be a present obligation of the entity.

Which of the following statements concerning the definition of expenses in the Conceptual Framework is incorrect?

Select one:

a.An expense arises whenever the economic benefits in an asset are consumed or lost.

b.An expense is recognised when the decrease in future economic benefits can be measured reliably.

c.All expenses must be matched with their associated income in the same financial perioD.

d.An expense occurs simultaneously with a decrease in an asset or an increase in a liability.

If an entity receives a deposit in advance of goods or services being supplied, the deposit is initially classified as:

Select one:

a.revenue.

b.a liability.

c.an expense.

d.an asset.

Which statement relating to workers' compensation insurance is incorrect?

Select one:

a.The premium is deducted from employees' salaries and wages.

b.The premium is based on a percentage of the total wages and salaries bill for the coming year.,

c.It is mandatory for all employers to obtain this cover.

d.It relates to an insurance scheme, imposed by law, whereby the employer purchases insurance which may be used to compensate employees for job related injuries and loss of wages.