TRUE OR FALSE? A financial liability that is due within one year after the reporting period shall be classified as current when is refinanced on a long-term basis after the end of the reporting period.
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TRUE OR FALSE?
A financial liability that is due within one year after the reporting period shall be classified as current when is refinanced on a long-term basis after the end of the reporting period.
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- TRUE OR FALSE? (Based on the book) A financial liability that is due within one year after the reporting period shall be classified as current when it is refinanced on a long-term basis after the end of the reporting period.TRUE OR FALSE? A liability is classified as noncurrent when at the end of the reporting period the entity has the right to defer settlement of the liability for at least twelve months after the reporting period.A liability is classified as a current liability if it is expected to be settled within the next twelve months after the statement of financial position date. True or False
- The liability that can be paid for more than one year is known as __. a. Non-current asset b. Long-term liability c. Current liability d. RevenueAt December 31, the end of the reporting period, the analysis of a loss contingency indicates that an obligation is only reasonably possible, though its dollar amount is readily estimable. During February, before the financial statements are issued, new information indicates the loss is probable. What accounting treatment is warranted?an entity has an existing note maturing within 12 months from the balance sheet date. The entity has the right to refinance the obligation for 15 months from the report date the obligation should be accounted for as A. Accounted for as a current liability when refinancing was done after the report date and after the issuance of the financial statement, with a corresponding disclosure in the notes regarding the refinancingB. Accounted for as a current liability when refinancing was done on or before the reporting date.C. Accounted for as a current liability when refinancing was done after the report date but before the issuance of the financial statement. D. Accounted for as a noncurrent liability when refinancing was done on or before the maturity date
- Debts that are due to be paid within one year or within the company's operating cycle are called: a.deferred liabilities. b.liquid liabilities. c.long-term liabilities. d.current liabilities. e.quick liabilities.When an entity has a continuing policy of guaranteeing new products against defects for three years, the liability arising from the warranty A. Should be reported as part current and part noncurrentB. Should be reported as noncurrentC. Should be reported as current.D. Need not be disclosed.Match (by letter) the correct reporting method for each of the items listed below. Reporting MethodC. Current liabilityL. Long-term liabilityD. Disclosure note onlyN. Not reported Item_____ 1. Accounts payable._____ 2. A contingent liability that is probable of occurring within the next year and can be estimated._____ 3. A contingent liability that is reasonably possible of occurring within the next year and can be estimated._____ 4. Current portion of long-term debt._____ 5. Sales tax collected from customers._____ 6. Notes payable due in two years._____ 7. Customer advances._____ 8. Commercial paper._____ 9. Unused line of credit._____ 10. A contingent liability that is probable of occurring within the next year but cannot be estimated.
- What is a long term liability? a. any debt that extends for more than 1 year b. assets=liabilities + owners equity c. fixed cost fall under the overhead d. payroll cost for labor, such as taxes and insuranceitems appear on the balance sheet of a company with a one-year operating cycle. Identifythe proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability,or N if it is not a liability. FUTA taxes payable.Which of the items are normally classified as current liabilities for a company that has a oneyearoperating cycle? FICA taxes payable.
