Contingent liabilities that are probable and can be estimated are... A. Reported on the balance sheet B. Reported only when paid with cash C. Are not required to be disclosed

Q: An SME does not need to present a statement of cash flows. True or false

A: statement of cash flows shows the cash inflows and cash outflows to and from the organization.  It's…

Q: Which statement is incorrect regarding presentation and disclosure of financial assets? a.…

A: Solution: The incorrect statement regarding presentation and disclosure of financial assets " The…

Q: Choose the correct. On a statement of financial affairs, how are liabilities classified?a. Current…

A: Statement of affairs: It refers to a statement of the assets and liabilities of a company. A…

Q: in relation to receivables, an entity is required by PFRSs to a. All of these b. disclose any…

A: Solution: In relation to receivables, an entity is required by PFRSs to: 1. Disclose any receivables…

Q: Examples of Current liabilities includes accounts payable, accruals and other short-term liabilities…

A: Current Liabilities are the liabilities (payments) that the company has to pay within a year. These…

Q: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: These are obligations which exist on balance sheet date although their amount is indefinite.  Is…

A: There are two types of event (1) Adjusting event (2) Non Adjusting event.   Adjusting event are…

Q: Aliability created for receiving cash for future services to be provided is termed a(n) O service…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Which of the following statements about cash received prior to the recognition of revenue in the fi…

A: Cash received prior to the recognition of revenue in financial statement is prepaid income for which…

Q: Accounts receivable are financial assets under the category Loans and Receivables that are measured…

A: Solution: As per IAS, Loans and receivables are financial assets that are measured at amortized…

Q: The presentation of current and non-current liabilities in the statement of financial position…

A: Definition:   Liability: Liability refers to the state of responsibility of a firm to pay its dues.…

Q: Typically, the estimated amount available for short-term payments in a statement of affairs…

A: Statement of accounts: It is the periodic statements summarizing all the account activity of the…

Q: On the balance sheet, liabilities are generally classified as a. current or long term b. legal or…

A: Current Liabilities Long term liabilities

Q: Evaluate the following statement. Statement 1. compensating balance requirements as a result of…

A: Compensating balance requirement is that minimum amount that is by a borrower in a bank. Overdraft…

Q: Although

A: BALANCE SHEET AMOUNTS ARE CARRIED AT NORMALLY AT BOOK VALUE

Q: Liabilities are classified on the balance sheet as current or O a. unearned. O b. deferred. O c.…

A: Liability can be defined as the amount owed by the firm to external parties. It is a payable amount…

Q: These are conditions required by IFRS 9 for notes and accounts receivable to be measured at…

A: The accumulated portion of the fixed asset that has been charged to expenditure through either…

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: A debt amortization schedule prepared for each debt and equity is considered a good control. O True…

A: Debt Amortization Schedule: A loan amortisation schedule is a comprehensive table of periodic loan…

Q: What information would you find in a statement of cashflows that you would not be able to get from…

A:

Q: Which of the following is true when accounts receivable are factored without recourse? a. The…

A: Accounts receivable factoring without recourse means that the factoring company is not retaining…

Q: Contingent liabilities are not recorded in the financial statements. True False

A: As per IAS 37, Provisions, contingent assets and contingent liabilities  A contingent liability is a…

Q: Listed below are several terms and phrases associated with current liabilities. Pair each item from…

A: Given items are matched with the relevant terms:

Q: Which of the following is NOT included in the financial assets? A. Cash. B. Investments in…

A: The financial assets include the liquid assets of the business.

Q: Interest received and interest payments must be reported as operating cash flows using a. IFRS. b.…

A:

Q: It is referred to as: Distinguishing current and non-current items on the balance sheet and…

A: A little introduction and the significance of it all:

Q: Distinguishing between current and non-current items on the balance sheet and presenting a subtotal…

A: A balance sheet of a company shows a company’s financial position at a particular point.…

Q: The payment of past debt by the entity will cause a decrease in asset due to the outflow of cash,…

A: Lets understand the basics. Debt is a liability which will needs to pay within certain future so it…

Q: Estimated liabilities are disclosed in financial statements by Note to the financial statements. An…

A: Estimated Liability: Because the services or commodities have been received, an estimated liability…

Q: Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current…

A: Liquid assets are the assets which is just equal to cash equivalents.

Q: Which of the following would not form part of quick assets? (A)Receivables (B) Cash (C) Prepaid…

A: Quick assets : these are the assets which are easily converted into cash (i.e. into liquid form).…

Q: The balance sheet account that is usually reported at its fair market value is: a. Short-term…

A: The assets can be classified fixed assets and current assets. The assets are recorded in balance…

Q: A deposit received is reported as a * A.liability B.current asset C.investment D.revenue

A: Deposit received means amount of money received from vendors or suppliers as deposit.

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: Current assets include all of the following: cash, inventory, equipment, supplies, and accounts…

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: Example of liabilities include notes payable and taxes payable True False

A: Liabilities refer to the amount that is payable to the outside entity by the company as a result of…

Q: Current liabilities are usually recorded and reported in financial statements at their ful maturity…

A: Financial statements: Financial statements are the final reports of a company, prepared at the end…

Q: 1.The following is a current liability: a. A long-term debt with current maturity, which will be…

A:

Q: True or False The Statement of Cash Flows is an optional disclosure for a set of financial…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: On the balance sheet, liabilities are generally classified as O legal or nonlegal. probable or…

A: The balance sheet shows the financial position of the business. It consists of liabilities and…

Q: 1. Subsequent to initial recognition, accounts receivable should be carried at a. Face Value c.…

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

Q: In which section of the statement of financial position should cash that is restricted for the…

A: Financial Position: The statement of financial position represents the financial information about a…

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.