Which is a valid statement regarding recognition of liabilities?        a. A non-interest bearing note is initially recognized at face value.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
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ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle
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 Which is a valid statement regarding recognition of liabilities? 
 
 
 
a. A non-interest bearing note is initially recognized at face value.
 
b. A provision should not be recognized for future operating losses.
 
c. For accumulating compensated absences, an entity should recognize the expense and related liability during the period the absences are incurred by the employees.
 
d. The estimated future costs of supplying awards for customer loyalty program shall be recognized as an expense in the period the award credits are availed of by customers.
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