True (t) or False (f) _____ Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur)
Q: A provision should be recognized when: O a. Present obligation from a past event, outflow that will…
A: Provision means an amount set side now to be payable in future because of some past event and…
Q: 18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk…
A: Contingencies means:
Q: What is meant by contingent Liability? How is it shown in final accounts?
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they…
A: A warranty liability is a liability account that reports the estimated amount that a company will…
Q: According to IAS 1, what are the classification of liabilities? O Current, noncurrent, estimated and…
A: Answer - According to IAS 1 - Liabilities are basically classified as Current and Non Current…
Q: The recognition of certain nonfinancial liabilities (e.g., contingencies and environmental…
A: Provision is recognized for uncertain amounts and timings. Therefore, the meaning of probable is…
Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…
A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…
Q: For most long-term liabilities, an important consideration is that they are properly authorized.…
A: The long term liability is reported as a long term because they covers many years and the majority…
Q: Within the current liabilities section, how do you believethe accounts should be listed? Defend your…
A:
Q: True (t) or False (f) ______ Notes receivable are generally reported as noncurrent assets.
A: Generally, Notes receivable are expected to be matured within 12 months. Therefore, notes…
Q: s)/problem(s) faced by SSB by referring to the MFRS 137 Provisions, Contingent Liabilities and…
A: Contingent liabilities refer to the liability that arises to an entity out of an unexpected future…
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: The Standard IAS 37 sets the criteria for recognition and measurement of Provisions; Contingent…
A: Contingent liabilities are those possible obligations whose existence shall be confirmed by the…
Q: Liabilities are obligations of a company to creditor. Select one: True False
A: Liabilities are obligations of a company to creditor. Answer: False Explanation: A liability is a…
Q: How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?
A:
Q: Which of the following statements is true concerning contingent liabilities? a. Such liabilities…
A: A contingent liability is a liability that may occur depending on the outcome of an uncertain future…
Q: no copy from chegg or other sources ,original answers only please How are liabilities classified?…
A: liabilities are classified into two types - 1) current liabilities 2) noncurrent liabilities
Q: is a practice of transfering the ownership of a negotiable instrument such as a check by a payee to…
A: Discounting means where the negotiable instrument has been given to bank before due date to take…
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: What amount should be reported as total noncurrent liabilities?
A: Answer: 1,620,00
Q: All of the following are true of known liabilities except: rev: 10_02_2019_QC_CS-184070 Top of…
A: liabilities are considered as legal financial debt or obligation that arises during the course of…
Q: Chapter 10, Question 16: What are contingent liabilities? List three examples of contingent…
A: Contingent liabilities are the liabilities which will arise on the happening or not unhappening of…
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: Amounts collected for third parties represent liabilities until remitted. Provide several examples…
A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…
Q: -----is not included in the category of payment guarantee. A. Deferred payment bond B.Guarantee…
A: Payment Guarantee is a type of consent given for the payment security in the future. Payment…
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: 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: RUE OR FLASE? The effect of a lender agreeing to give the borrowing entity a grace period within…
A: Non Current Liability are long term liabilities where their payment is due 12 months after the…
Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…
A: Contingency is a liability that may arise in the future while the real liability has already…
Q: If problem is silent as to the terms of a Warranty Payable, will it be presented in the current…
A: Warranty Payable:-It is a liability for the company which means the company has to pay for repair…
Q: Which of the following liabilities would be considered nonrecourse?
A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…
Q: Why do deferred liabilities arise? Explain your answer with suitable example.
A: Why do deferred liabilities arise? Explain your answer with suitable example.
Q: What guidance does the Codification provide on the classification of current liabilities?
A: Current liability is a liability which is to be paid in next 12 months
Q: Allowance for Doubtful Accounts is a liability account. True False
A: Answer is false.
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: gent liab
A: Contingent Liability A contingent liability is an obligation that may arise as a result of the…
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: Contingent liabilities must be recorded if: O The future event is probable and the amount owed can…
A: Contingent liability is the liability that occurs which depends on the future event that may or may…
Q: Describe how the matching principle applies to contingent liabilities (hint: warranties).
A: Introduction:- Contingent liability may or may not occurred in the future. Matching principles…
Q: RUE OR FALSE? The effect of a lender agreeing to give the borrowing entity a grace period after the…
A: Current liabilities: Current liabilities are the obligations that are to be met within a year or 12…
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: 33. Contingent liabilities are:* Disclosed in the notes unless the possibility of an outflow of…
A: A liability whose occurrence depends upon the happening or non happening of future uncertain events…
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…
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- Contingent liabilities are not recorded in the financial statements. True Falseclassified as liabilities and explain why, or why not, they are classified as liabilities:a) Provision for warrantyb) Unearned revenuec) GST payabled) Allowance for doubtful debtse) A disputable lawsuitA basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
- 1. What are the audit procedures used to identify contingent liabilities?Describe how the matching principle applies to contingent liabilities (hint: warranties).What are the three elements of the definition for liabilities? List from the following items that are classified as liabilities and explain why, or why not, they are classified as liabilities:a) Provision for warrantyb) Unearned revenuec) GST payabled) Allowance for doubtful debtse) A disputable lawsuit looking for expert's opinion
- Can you please describe contingent liabilities and how to account for and/or report them.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.Which of the following statements is true concerning contingent liabilities? a. Such liabilities should include obligations of known existence but of unknown amount. b. If the definite amount is involved, it is not a contingent liability. c. Such liabilities are generally reported and totaled with other liabilities to make up the liability section of most balance sheets. d. Such liabilities should include obligations known in amount but unknown in existence.
- 18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk of property loss by fire or other hazardsb. guarantees of indebtedness of othersc. noncollectibility of receivablesd. agreements to repurchase receivables that have been soldThe Standard IAS 37 sets the criteria for recognition and measurement of Provisions; Contingent liabilities and Contingent assets; and requires several disclosures about these items to understand them better. Where do you find contingent liabilities in the financial statements? a.Notes to Accounts b.None of the options c.Current Liabilities d.Non-current LiabilitiesWhich of the following is a characteristic of a current liability? A. It is an avoidable obligation. B. It occurs because of a future transaction or event. C. It cannot be settled with services. D. It creates a present obligation for future payment of cash or services.