t23 .Which of the following does not meet the definition of a liability? *O the signing of a cancellable contract for purchase commitmentO an obligation to provide goods or services in the futureO an obligation that is estimated in amountO a note payable with no specified maturity date

Solution: "The signing of a cancellable contract for purchase commitment" does not meet the…

Answered: Which of the following does not meet…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 12MCQ

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Similar questions

Which 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.
An encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. False
Which of the following arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time? A receivable A contract asset A contract liability None of these choices
1. Which of these is not a current liability? A. Serial maturity of long-term obligations B. Payables in providing services to be offered for sale C. Accruals for salaries and wages D. Contractual obligations falling due at an early date which are expected to be refunded E. none of the choices 2. An estimated liability is an obligation which is uncertain as to:* A. NO - amount; YES - existence B. YES - amount; YES - existence C. NO - amount; NO - existence D. YES - amount; NO – existence
4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or False
Which of the following would not be considered a general long term liability?Select one:a. Long term promissory notesb. Long term portion of judgementc. Unfunded compensated absencesd. Unfunded rent obligation
Which of the following is most likely to result in the recognition of a liability? a. Customers become entitled to rebates for their past purchases. b. Intention to acquire inventories in a future period. c. Entering into a purchase contract for future delivery. d. Agreeing on an irrevocable future commitment that is not burdensome at present.
Which of the following is incorrect? A.To qualify as a liability, an obligation must be payable in cash or in goods and services. B.A copyright is an example of a liability. C.To qualify as a liability, an obligation must be scheduled for settlement at some future time. D.All of the above
When an entity breaches a covenant under a long-term loan agreement on or before the end of the reporting periodwith the effect that the liability becomes payable on demand, the liability is classified as noncurrent whenI. The lender has agreed after the end if the reporting period and before the financial statements areauthorized for issue not to demand payment as a consequence of the breach.II. The lender has agreed on or before the end of the reporting period to provide a grace period ending atleast twelve months after that date. a. Both I and IIb. Neither I and IIc. I onlyd. II only
Which of the following is NOT a contingent liability? a. Pending law suit for property damage b. Product warranty c. Discounted note receivable d. Pending law suit for slander
If a problem is silent as to whether a warranty payable is short-term or long-term, will it be considered a short-term or a long term liability?
18. Which of the following loss contingencies is not usually accrued? a. product warranty obligationsb. premium offer obligationsc. risk of loss from fired. noncollectibility of receivables

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Which of the following does not meet the definition O the signing of a cancellable contract for purchase commitme O an obligation to provide goods or services in the future O an obligation that is estimated in amount O a note payable with no specified maturity date