Key Words

Question 1

Finance costs

Answer 1

Interest

Question 2

Contingent liability

Answer 2

A possible obligation for past events

The possible compensation should be disclosed as a note in the accounts.

Question 3

Provision

Answer 3

A probable obligation from past events

Question 4

Assets

Answer 4

A present economic resource controlled by the entity as a result of past events
An economic resource is a right that has the potential to produce economic benefits.

Question 5

Liabilities

Answer 5

Present obligation of the entity to transfer an economic resource as a result of past events

Question 6

Equity

Answer 6

The residual interest in the assets of an entity after deducting all its liabilities

Question 7

Income

Answer 7

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims

Question 8

Expenses

Answer 8

Decreases in assets, or increases in liabilities that result in decreases in equity, other than those relating to distributions to holders of equity claims