When accounting for contingent liabilities IFRS GAAP defines ‘probable’ as a. likely b. more likely than not c. possible d. none of these
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8. When accounting for
a. likely
b. more likely than not
c. possible
d. none of these
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- 9- All of the following are true of known liabilities except: rev: 10_02_2019_QC_CS-184070 Top of Form Multiple Choice Can arise from agreements or contracts. Include accounts payable, notes payable, and payroll. Are measurable. May depend on some future event occurring. Can arise from laws. Bottom of Form5. On the balance sheet, liabilities are generally classified as a. current or long term b. legal or nonlegal c. material or immaterial d. probable or estimatedThe 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 Liabilities
- 21. Contingent assets need not be disclosed in the financial statements or the notes thereto if they are considered? * a. Virtually certain. b. Probable. c. Possible but not probable. d. Likely.7. Net Working Capital is the difference between Current Assets andLong-Term Liabilities. T/F 8. APR takes into consideration compounding, whereas EAR does notfactor in compounding. T/FT 0r F 53. When debt is retired prior to its maturity date, a gain or loss must be recognized for the difference between the carrying amount of the debt security and the amount paid. 67. A provision should never be discounted to the present value of the expected cash outflows needed to settle the obligation 75. A contingent asset is an accrued account. 42.According to PAS 37, an entity shall recognize contingent assets that are probable.
- How do U.S. GAAP and IFRS differ in their use of present values when measuring contingent liabilities?27-Which one of the following is an example for 'Deferrals'? a. Provision for doubtful debt b. Depreciation c. Unearned revenue d. Outstanding expensesThe answer for other current liabilities is wrong and not 37M
- Current liabilities normally are recorded at their: Select one: O a. Expected value. O b. Present value. O c. Cost. O d. Maturity amount.14 Risk related to counterparty failure to meet their obligation based on the initially agreed terms is referred to as:* A. Operational risk B. Funding risk C. Credit risk D. Fiduciary riskWhich 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.