The Framework recognises that settlement of liabilities can occur in several ways.What is not one of those ways?

Question

Quizplus · Accepted Answer

Settlement of liabilities typically involves the transfer of resources or services to meet the obligation, such as transferring other assets, replacing the obligation with another, or converting the obligation to equity. A cash receipt, however, represents an inflow of economic benefits to the entity (such as receiving money), which does not align with the concept of settling liabilities, as settling a liability involves paying out or fulfilling the obligation, not receiving cash.

The Framework Recognises That Settlement of Liabilities Can Occur in Several