A provision is an existing liability of uncertain timing and uncertain amount True False
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Q: PROVIS A provision is an existing liability of uncertain timing uncertain amount. The essence of a…
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A:
Q: Suppose the analysis of a loss contingency indicates that an obligation is not probable. What…
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A provision is an existing liability of uncertain timing and uncertain amount True False
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- Which of the following best describes a contingent liability that is unlikely to occur? A. remote B. probable and estimable C. reasonably possible D. probable and inestimableThe present obligation is not a contingent liability but shall be recognized as a provision when *a. Amount is reasonably estimable and event occurs infrequentlyb. Amount is reasonably estimable and occurrence of event is probablec. Event is unusual in nature and occurrence of event is probabled. Event is unusual in nature and event occurrs infrequentlyTRUE OR FALSE A liability can exist even if the party to whom the obligation is owed is not specifically identified.
- Suppose the analysis of a loss contingency indicates that an obligation is not probable. What accounting treatment if any is warranted?Which of the following statements is false?a. A contingent liability should be disclosed in the notes to the financial statements if thereis a reasonable possibility that a loss (or expense) will occur.b. All contingent liabilities should be reported as liabilities on the financial statements,even those that are unlikely to occur.c. A contingent liability is a potential obligation that depends on the future outcome of pastevents.d. A contingent liability should be accrued if the loss is probable and the amount of theloss can be reasonably estimated.State with reason whether the following statements are true or false Contingent liability is an ascertained liability but its amount and due date are indeterminate.
- Which of the following best describes a contingent liability that is unlikely to occur?A. remoteB. probable and estimableC. reasonably possibleD. probable and inestimableWhen the likelihood a liability will occur is remote but the amount can be estimated, the liability is reported in the footnotes to the financial statements. -True -FalseIf a contingent liability is probable but estimable only within a range, what amount, if any, should the firm report?
- Which of the following statements is false?Select one:a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will occur.b. A contingent liability should be accrued if the loss is probable and the amount of the loss can be reasonably estimated.c. A contingent liability is a potential obligation that depends on the future outcome of past events.d. All contingent liabilities should be reported as liabilities on the financial statements, even those that are unlikely to occur.When should a contingent liability be recognized and reported on the financial statements? A. Reporting contingent liabilities do not require they be probable or reasonably estimated B. When the contingent liability is probable C. When a reasonable estimation can be made of the amount owed D. When the contingent liability is probable and a reasonable estimation can be made of the amount owedA contingent liability O always exists as a liability but its amount and due date are indeterminable. O is accrued even though not probable. O is always the result of a loss contingency. O is not reported as a liability if not probable.