ACCA AA · Chapter 9 · Question 10 of 10
A bank loan repayable in instalments over five years has been shown entirely within non-current liabilities. Which assertion has been breached?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Classification
Explanation
The loan exists and is recorded in full, but the portion repayable within twelve months should be shown as a current liability. Splitting a balance into the correct categories relates to the classification (and presentation) assertion.
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