Which of the following characteristic of a liability, if satisfied, would prompt the classification of that liability as a current liability? for which the entity does not have an unconditional right at the end of the reporting period to delay payment beyond 12 months.

Which of the following characteristic of a liability, if satisfied, would prompt the classification of that liability as a current liability? for which the entity does not have an unconditional right at the end of the reporting period to delay payment beyond 12 months.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1MC: Which of the following is not considered a current liability? A. Accounts Payable B. Unearned...

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Which of the following characteristic of a liability, if satisfied, would prompt the classification of that liability as a current liability?

for which the entity does not have an unconditional right at the end of the reporting period to delay payment beyond 12 months.
due to be settled for more than 12 months after the reporting period.
due to be settled outside the normal operating cycle of the company
cash and cash equivalents, unless restricted

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Accounting for Current liabilities, Provisions and Contingencies

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