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.
Q: Xing Fu ltd., in preparation of its December 31, 2019, financial statements, is attempting to…
A: Journal entries refers to the systematic documentation of the financial transactions of a company in…
Q: How should Loud account for this contract modification? Additional Instruction The contract…
A: A contract is an agreement made between two parties that defines the rules and responsibilities to…
Q: Which of the following will be classified as a current liability? O a. Two-year noțes payable Ob.…
A: Please find the answer to the above question below:
Q: Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swell’s attorney…
A: Contingent liability: A contingent liability, as the name suggests, is a liability that may or may…
Q: ROSE Company entered into a lawsuit on December 20, 2021 and recognized on the same date a provision…
A: Lets first understand the meaning of current and non-current liability. As per IAS 1 "Presentation…
Q: If at the end of the second year of a 4-year contract, a company determines total estimated costs…
A: International accounting standard require recognition of loss if the estimated costs exceed…
Q: Big Hitter Corp. is facing a class-action lawsuit in theupcoming year. It is possible, but not…
A:
Q: In June 2019, Buwis Buhay was involved in a court case amounting to P10,000,000. The attorney…
A: As per IFRS 37 , When it is virtually certain of inflow of resources Occur then recognise "Asset"
Q: Which of the following items is most likely a short-term liability? Select one: a. Finance lease…
A: Answer is option c) Accounts payable
Q: On January 1, 2020, the entity began a program of granting 2. What is the accrued liability on…
A: Accrued liability is the liability which has been accrued but the company has not been paid yet.…
Q: Which of the following characteristic of a liability, if satisfied, would prompt the classification…
A: Current liabilities are a company's short-term financial obligations that are due within one year or…
Q: Under the pre-2019 accounting standards, how are operating leases reported in the lessee's balance…
A: An operating lease is a contract in which the lessor, allows the lesse, to use an asset for a length…
Q: Concord Corporation purchased a one-year insurance policy in January 2020 for $79200. The insurance…
A: The question is based on the concept of Financial Accounting.
Q: What amount should RIS report as a liability at December 31, 2021? a. P 0 b. P 26,000
A: Liability is an obligation that has to be paid by sacrificing the assets of the company. It includes…
Q: When an entity has a continuing policy of guaranteeing new products against defects for three years,…
A: Liability arising from the warranty which will be due within a year is reported under current…
Q: Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swell’s attorney…
A: Contingent Liability: A Contingent liability is a liability that may or may not arise in the future…
Q: 14. Humanizer Company gives warranties at the time of sale to purchasers of its product. Under the…
A: Warranty is a type of assurance which is being given by seller of goods to the buyer that in case…
Q: 14. Humanizer Company gives warranties at the time of sale to purchasers of its product. Under the…
A: SOLUTION WARRANTY EXPENSE IS THE COST THAT THE BUSINESS EXPECT TO OR ALREADY INCURRED FOR THE REPAIR…
Q: 1. Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the…
A: As per IAS 10, Events after the reporting period, An event is said to be adjusting event if, that…
Q: Which of the following is most likely to be classified and reported as current liability? a. Bond…
A: The liabilities that are payable within one year are classified as current liabilities. It includes…
Q: MESA gives warranties at the time of sale to purchasers of its product. Under the terms of the…
A: At 31 December 2021, MESA recognized P50,000 warranty provision MESA incurred and charged P140,000…
Q: The following selected circumstances relate to pending lawsuits for Erismus, Inc. Erismus's fiscal…
A: US GAAP:- GAAP is Generally Acceptable Accounting Principle that is used by U.S. for the…
Q: Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year…
A: Answer: C.1,000,000 Accrued liabilities are such liabilities which have not yet been paid during an…
Q: In August 2021, a company's worker was injured in the factory in an accident partially the result of…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The following selected circumstances relate to pending lawsuits for Erismus, Inc. Erismus’s fiscal…
A: Contingent Liability: Contingent liability refers to any potential liability that can occur…
Q: The errors below were noted after the books of CalMart Corporation were audited at the close of 2021…
A: Particulars Net Income Assets Liability Retained Earning before Closing Retained Earning after…
Q: ROSE Company entered into a lawsuit on December 20, 2021
A: Lets 1st perceive the which means of current and non-current liability. As per IAS one "Presentation…
Q: Where is debt callable by the creditor reported on the debtor's financial statements? a) Long term…
A: Definition: Current liabilities: The obligations owed by a company to creditors and suppliers and…
Q: The following are the rules to be observed in counting the 4-year period for prescription of an…
A: Annulment action id referred to as the legal procedure, before any of the Court of Justice, which…
Q: Under AASB 101, something may be classified as a current liability even when it is expected to be…
A: As per AASB 101, an entity shall classify a liability as current when it is expected to be settled…
Q: REALME INC. entered into a lawsuit on December 20, 2021 and recognized on the same date a provision…
A: CURRENT LIABILITY : Current liabilities are company's short term obligations which are normally due…
Q: We discussed contingent liabilities in class. Describe the conditions for when a contingent…
A: A liability whose occurrence depends upon the happening or non happening of future uncertain events…
Q: ion to a labor c
A: An event is said to be adjusting event if, that event which occurs after reporting period provides…
Q: warranty with its product or service show an expense in the year of sale
A: Matching principle urges an entity to recognize expense , the period during which related revenue is…
Q: amount should the current liability be presented in the statement of financial position?
A: Current liability is the amount of liability, the payment of which is due within a year.
Q: As of December 31 of the current year, Fernandez Company has prepared the following informa-tion…
A: Requirement a:
Q: When products sold with a guarantee of free service or replacement during an extended warranty…
A: Introduction: Warranty: Warranty is given to the products. it can be free service or replacement of…
Q: Humanizer Company gives warranties at the time of sale to purchasers of its product. Under the terms…
A: Warranty is a type of assurance which is being given by seller of goods to the buyer that in case…
Q: July 15, 2020. Prepare the journal entries fo Cullumber related to this contract. Either party may…
A: Date Accounts and Explanation Debit Credit May 10, 2020 No entry (To record entry of…
Q: sued by Dulcinea, Inc. for $1,000,000. Mojito’s attorneys believe that it is probable that the…
A: A contingent liability is a potential responsibility that may develop in the future, such as pending…
Q: 1. Compute for the current liability to be presented in the financial position a. P12 million…
A:
Q: Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year…
A: Adjusting events are those events occurring after balance sheet date and has relation to the amounts…
Q: Which of the following shall not be classified as current liability? * An obligation to be settled…
A: The balance sheet is the statement of financial position of the business.
Q: An entity classifies the obligation as non-current if an entity expects, and has the discretion, to…
A: True Explanation: As per, IAS 1 Presentation of Financial Statements Current/non-current…
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.
Step by step
Solved in 2 steps
- 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.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.In which of the following instances would a liability that would otherwise be presented as current is presented as noncurrent a. The liability is payable on demand but the lender promises the entity after the reporting period that the lender will not demand payment in the next 12 months b. The entity enters into a refinancing agreement after the reporting period but before the financial statements are authorized for issue c. The entity enters into a refinancing agreemerit and the agreement is completed by the balance sheet date d. The liability is payable on demand but the entity estimates that it is probable that the lender will not demand payment
- 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 FalseWhen 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.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
- TRUE OR FALSE? Short-term obligation refinanced on a long-term basis at the end of the reporting period is a current liability.Which of the following is not considered a current liability? A. Accounts Payable B. Unearned Revenue C. the component of a twenty-year note payable due in year 20 D. current portion of a noncurrent note payableThe following are the rules to be observed in counting the 4-year period for prescription of an action for annulment, except In cases of intimidation, violence or undue influence, 4-year period shall begin from the time the defect of the consent ceases. In cases of fraud or mistake, 4-year period shall begin from the time of the discovery of the same. For all voidable contracts, 4-year period shall be counted from the date of the contract. In cases of contracts entered into by wards or incapacitated persons, 4-year period shall begin from the time the guardianship or incapacity cease.
- TRUE OR FALSE?1. Short-term obligation refinanced on a long-term basis at the end of the reporting period is a current liability.2. An entity must make the current and noncurrent presentation of assets and liabilities, except when a presentation based on liquidity provides information that is reliable and more relevant.3. 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.Which of the following does not meet the definition of a liability? a. The signing of a 3-year employment contract at a fixed annual salaryb. An obligation to provide goods or services in the futurec. A note payable with no specified maturity dated. An obligation that is estimated in amountAs of December 31 of the current year, Fernandez Company has prepared the following informa-tion regarding its liabilities and other obligations: Notes payable, of which $20,000 will be repaid within thenext 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000Interest expense that will result from existing liabilities overthe next 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000Lawsuit pending against the company, in which $500,000is claimed in damages. Legal counsel can make no reasonableestimate of the company’s ultimate liability at this time . . . . . . . . . . . . . . . . . . . . 400,00020-year bond issue that matures in two years. The entireamount will be repaid from a bond sinking fund . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000Accrued interest on the 20-year bond issue as of the balancesheet date . . . . . . . . . . . . . . . . . . .…