Under AASB 101, in the statement of financial position, companies are normally required to distinguish between:
A)cash on hand and cash at bank.
B)property and plant.
C)current and non-current liabilities.
D)current profit and retained profits.

Question

Quizplus · Accepted Answer

AASB 101 requires companies to present a statement of financial position that separates current assets and liabilities from non-current assets and liabilities. This helps users of financial statements to understand the liquidity and solvency of the entity. Therefore, the correct choice is C, current and non-current liabilities.

Under AASB 101, in the Statement of Financial Position, Companies