1. Which of the following is not an essential characteristic of a liability? * a. It is a present obligation that entails settlement by probable future transfer or use of cash, goods or services. b. The liability must be an unavoidable obligation. c. The transaction or other event O creating the obligation must have

Q: Determine when a liability can be classified as a noncurrent obligation.

A: Liabilities are obligations arising from past transactions and payable in assets or services in…

Q: The fair value of a liability is defined as: a. the appraised value of the liability. b. the price…

A: The fair value of a liability is defined as the amount that would be paid when transferring a…

Q: A contingent liability O always exists as a liability but its amount and due date are…

A: Contingent liabilty is a liability which has probable chances of becoming a liability in the near…

Q: Which of the following is not considered a characteristic of a liability? O Present obligation. O…

A: Liability means the amount which is to be paid to an outsider by business.  It is the present…

Q: Under what conditions should a contingent liability berecorded?

A:

Q: Which of the following is a characteristic of a current liability but not a long-term liability?…

A: A liability is an obligation that comes from transactions done in past and payable in assets or in…

Q: classified as liabilities and explain why, or why not, they are classified as liabilities: a)…

A: Liabilities are those financial obligation which would result in outflow of financial resources of…

Q: Which of the following is not a condition necessary to exclude a short-term obligation from current…

A: SHORT-TEAM OBLIGATIONS: Debt, also called current liabilities, is a firm's financial obligations…

Q: contingent liabilities? Which two conditions have to be met in der to report a contingent liability…

A: The foundation for determining investor returns and analyzing a company's financial structure is the…

Q: I. A provision is a present obligation which may either be legal or constructive. II. Even if a…

A: As per IFRS 37, A Provision is present obligation that arises from past event, in which outflow of…

Q: Why is Unearned Revenue considered a liability?

A: Unearned revenue is the revenue that has not been earned yet but payment has been received from the…

Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…

A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…

Q: When an obligation is subject to an obligation, the moment the condition is fulfilled, the…

A: The following statement is True... When an obligation is subject to an obligation, the moment the…

Q: An estimated liability is an obligation which is uncertain as to: *   A. NO - amount; YES -…

A: Liability means the amount which is to be paid to an outsider by business.Generally liabilities have…

Q: Which of the following is most likely to result in the recognition of a liability? a. Customers…

A: Liability refers to an obligation of one party to pay money or any other consideration to the other…

Q: The following are grounds for liability to pay damages, except:     a. Negligence b. Fraud c.…

A: The following are grounds for liability to pay damages Negligence Fraud Contravention of the tenor…

Q: Which of the following statements is false?a. A contingent liability should be disclosed in the…

A: A contingent liability is a liability which occurrence is depending on the outcome of a uncertain…

Q: Which of the following is not an essential characteristic of a liabili O All are essential…

A: Liabilities are those present obligations that are due to business and they could be short-term in…

Q: 9. For a liability to exist, a past transaction or event must have occurred. the exact amount must…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When an entity breaches an undertaking under a long-term loan agreement on or before the balance…

A: As per IAS 1, Presentation of financial statement, Current liabilities are the liabilities of an…

Q: Contingent liabilities are obligations that may or may not materialize

A: Contingent liabilities are obligations that may or may not materialize will be explained:

Q: What is the amount of the current liability related to this transaction?

A: Invoice raised for the sales made by the company = 4,000 batteries * $150  + 6% sales tax =…

Q: 4.   An encumbrance represents the estimated future liability for goods or services resulting from…

A: Encumbrance is the future estimation which is kept aside, as per the requirement of law. This are…

Q: How does unearned revenue arise? Why can it be classifiedproperly as a current liability? Give…

A: Unearned revenue: The revenue which is received in advance by the company for the services or goods…

Q: The accrual of a contingent liability and the related loss should be recorded when the a. Loss…

A: Accrued liability are refer as when probability of occurrence of the loss contingency is probable…

Q: Which of the following is incorrect? A.To qualify as a liability, an obligation must be payable in…

A: As per Generally Accepted Accounting Principles, liabilities refer to a present obligation that…

Q: Are monetary obligations under a contract of surety intransmissible by their nature, by stipulation,…

A: Contract of surety relates to the contract of guarantee a contract is to perform the promise or…

Q: I. A provision is a present obligation which may either be legal or constructive. II. Even if a…

A: As per IAS 37 Provisions, Contingent Liabilities and Contingent Assets, A provision is a present…

Q: For a liability to exist  a. There must be a past transaction or event b. The exact amount must be…

A: Solution: A liability is a present obligation as a result of past event that requires outflow of…

Q: Under what circumstances is a contingent liability reflected in the accounting records as though an…

A: Contingent liability: Liability that can occur in future depending on the outcome of an uncertain…

Q: Which of the following is not a ground for the extinguishment of an obligation? O Condonation or…

A: Following is the correct answer

Q: In explaining the meaning of obligation in the definition of a liability, the Conceptual Framework…

A: when a liability arises to pay the amount than obligations will arise.

Q: Liabilities are present obligation which represent O legal only O expected value O neither legal or…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: A. For an asset, derecognition normally occurs when the entity loses control of all or part of the…

A: Derecognition means derecognizing the assets or liability where some predefined conditions met.

Q: What is the relationship between provisions, onerous contracts, contingent liabilities and other…

A: The book in which the company records all its transactions initially is termed as journal book. From…

Q: Define what is an off-balance sheet activity? Also provide example of an off-balance sheet an…

A: Off-Balance sheet Activity means the assets or liabilities which are not reflected in the balance…

Q: For a liability to be recognised within the financial statements, it needs to be reasonably apparent…

A: As per IFRS  a liability is that the future payment of which results…

Q: Define (a) a contingency and (b) a contingent liability

A: a. Contingency: Contingency refers to an uncertain situation in which the uncertain situation exists…

Q: 1. Which of the following modification of terms will not qualify for derecognition of financial…

A: Solution Concept Derecognition of financial liability A financial liability is derecognized when the…

Q: Which of the following is usually not an accrued liability? Select one: a. Notes payable b. Taxes…

A: Accrued liability refers to the amount of liability that represents the expenses for the current…

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: One of examples of contingent liability is an: * a. Obligations related to product warranties b.…

A: As per IFRS 37 provisions, contingent liabilities and Contingent assets. A provision is an present…

Q: Which of the following is not a liability?

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.