Which of the following is not a condition necessary to exclude a short-term obligation from current liabilities? Intend to refinance the obligation on a long-term basis.
Q: measure a provision a. at fair value b. at cost c. at the best estimate of the amount required to…
A: Small manufacturing companies have a small investment with its lower scope of business activities.…
Q: What is the debt with a subjective acceleration clause in the exposure draft, Topic 470?
A: The is based on the concept of accounting of debt and accounting treatment of debt in books of…
Q: What is the effect of the fulfillment of the condition in a conditional obligation? resolutory…
A: A conditional obligation would seem to be one that is contingent on the occurrence of an unknown…
Q: PROVIS A provision is an existing liability of uncertain timing uncertain amount. The essence of a…
A: Provision is an amount kept separately for some uncertain event that may happen in the future (Just…
Q: The ability to meet short term obligations is termed
A: A short-term liability is referred to as the financing obligation that being liable to an…
Q: resent obligation is not a contingent liability but shall be recognized as a provision when * a.…
A: Solution: Contingent liability is the liability which depends on the results of any future event…
Q: What evidence is necessary to demonstrate the ability to defer settlement of short-term debt?
A: Short-term debt: Short-term debt refers to the current liability of an organization. This means that…
Q: Why would a lease include a contingent payment provision? Explain.
A: Contingency payment provisions is a provision for a possible event or circumstance which is not…
Q: Explain Options to Report Liabilities at Fair Value.
A: Introduction FASB introduces Fair Value Options to report assets and liabilities in fair value,…
Q: what conditions are not necessary to exclude a short term obligation from current liabilities?
A: Current liabilities: It refers to short term financial obligations that are to be discharged within…
Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?
A: A contract is an agreement between more than one person to perform the duties mentioned in the…
Q: What are contingent liabilities?
A: Liabilities by and large, are a commitment to, or it is an amount that one owes to another person.…
Q: Under what conditions should a short-term obligation beexcluded from current liabilities?
A: Current liabilities: The debt obligations owed by a company to creditors and suppliers and are to be…
Q: If the down payment is non-refundable, how much is the contract liability to be initially recorded?
A: Contract liability that is to be recorded initially can be calculated by adding the down payment…
Q: Which of the following would not be considered a general long term liability? Select one: a. Long…
A: Short term obligations are the obligations that have to be paid within a year. whereas, long term…
Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…
A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…
Q: When an obligation is subject to an obligation, the moment the condition is fulfilled, the…
A: The following statement is True... When an obligation is subject to an obligation, the moment the…
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: An obligation that is contingent on the occurrence of a future event should be reported in the…
A: Financial statements: The financial statements refer to the combination of a various statements like…
Q: If a problem is silent as to whether a warranty payable is short-term or long-term, will it be…
A: Warranty payable represents a liability account that reports the estimated amount that a company…
Q: Describe Short-Term Obligations Are Expected to Be Refinanced.
A: Refinancing refers to the process where revival of interest rate, payment schedule and terms of…
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: Short-term obligations can be reported as noncurrent liabilities if the company (a) intends to…
A: There are two conditions in which short term obligations can be reported as non current liabilities…
Q: When the debtor binds himself to pay when his means permit him to do so, the obligation is:
A: When the debtor binds himself to pay when his means permit him to do so, the obligation is: Answer -…
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: What are the two types of losses that can become evidentin accounting for long-term contracts? What…
A: The two types of losses that can become evident while accounting for long-term contracts are:(1) A…
Q: Describe When Short-Term Obligations of liabilities Are Expected to Be Refinanced.
A: Short-term obligations are the current liabilities of an enterprise that is required to be fulfilled…
Q: Short-term obligations are reported as noncurrent
A: Short-term obligations are liabilities to be settled within one accounting year.
Q: IFRS 16 states that lessors shall recognize assets held under finance lease as a receivable at an…
A: IFRS 16 Leases: It tells the principles related to the recognition, measurement, presentation, &…
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: under what conditions a short-term obligation should be excluded from current assets
A: Please find the answer to the above question below:
Q: Which of the following is not a ground for the extinguishment of an obligation? O Condonation or…
A: Following is the correct answer
Q: In what way do current liabilities and long-term liabilities differ from each other?
A: Current liabilities are liabilities that are due within one year. In other words, current…
Q: How might the definition of “probable” affect determining whether a contract exists under IFRS as…
A: GAAP: GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules…
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: The following obligations are immediately demandable, EXCEPT: a pure obligation obligation with…
A: There are obligation to be paid immediately but there are some conditional liabilities they occur…
Q: Whenever a period is designated in an obligation, the said period shall presumed to have been…
A: Ans. Whenever a period is designated in an obligation, the terms specified reflects the benefits and…
Q: Contingent liabilities that are probable and can be estimated are...
A: A contingent liability is an unforeseen obligation i.e. it has a potential risk that may occur in…
Q: Why A debt security pays a fixed stream of income or a stream of income that is determined according…
A: Debt instruments It is the fixed-income securities that generally make payment of fixed interest…
Q: n the case of a non-adjusting event, IAS 10 requires it to be: Select one alternative: disclosed…
A: Solution: In the case of a non-adjusting event, IAS 10 requires it to be "disclosed by way of note…
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- Errors During the course of your examination of the financial statements of Burnett Co., a new client, for the year ended December 31, 2019, you discover the following: Inventory at January 1, 2019, was understated by 6,000. Inventory at December 31, 2019, was overstated by 5,000. During 2019, the company received a 1,000 cash advance from a customer for merchandise to be manufactured and shipped during 2020. It had credited the 1,000 to sales revenue. The companys gross profit on sales is 50%. Net income reported on the 2019 income statement (before reflecting any adjustments for the above items) is 20,000. Required: Next Level What is the correct net income for 2019?29. Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities withina. an operating cycle.b. one year.c. one year or operating cycle, whichever is shorter.d. one year or operating cycle, whichever is longer.Define the following: Condition Civil loss Reciprocal obligations Pure obligation Potestative condition Problems Explain or state briefly the rule or reason for your answer. 1. D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30. Before the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist that B pay not later than August 30? 2. Suppose in the same problem, D obliges himself to pay C P10,000 after C has paid his obligation to T. Is the obligation valid? 3. S (seller) agreed to sell to B (buyer) a specific car for P200,000, delivery of the car and the payment of the price to be made on June 15. Suppose S delivered the car on June 15 but B failed to pay the price, what are the remedies of S? 4. S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The land was delivered to B who obtained ownership thereof. After B had paid P200,000, he could no longer continuing paying in view of…
- 7 Explain how the CECL model (introduced in ASU No. 2016-13 and required in 2020) differs from current GAAPin its calculation of bad debt expense*attached is the problem REQUIRED: choose the letter What is the lease liability on Dec. 31, 2020? a. 1,352,000b. 1,152,000c. 1,067,200d. 1,552,000 What is the lease liability to be reported as non-current on Dec 31, 2020? a. 1,215,920b. 1,090,240c. 1,067,200d. 973,920Supposing we the contract entered in is at the price of $285. We would like to evaluate our position with respect to gain or loss accrued on the forward contract 4 months later where the price of the asset is $293.15. The market value of the forward contract at this point in time from our perspective would be: a. -$17.14 b. $8.15 c. -$8.15 d. $17.14
- In its Dec. 31, 2020 statement of financial position, how much current liabilities should be reported? (SEE ATTACHED FOR PROBLEM) CHOICES a. P 4,000,000b. P 3,640,000c. P 3,000,000d. P 1,500,0005. An entity classifies the obligation as non-current if an entity expects, and has the discretion, to refinance or rollover an obligation for at least twelve months after the reporting period under an existing loan facility, even if it would otherwise be due within a shorter period. Select one: True or FalseWhat is meant by noncurrent liabilities? Define it? And provide one NCL account for emirates pleas emake sue the answer is correcrt 100%
- M owes 10,000.00. The debt which.is evidence by a promissory note,is guaranteed by G.P assigns the.note to A,A and B,B to C, and C to G. Is the obligation extinguished3. Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within. a. one year or operating cycle, whichever is longerb. one yearc. one year or operating cycle, whichever is shorterd. an operating cycleQ9 he objective of IAS 17 Leases is to prescribe the appropriate accounting treatment and required disclosures in relation to leases. Which TWO of the following situations would normally lead to a lease being classified as a finance lease? (i) The lease transfers ownership of the asset to the lessee by the end of the lease term. (ii) The lease term is for approximately half of the economic life of the asset. (iii) The lease assets are of a specialised nature such that only the lessee can use them without major modifications being made. (iv) At the inception of the lease, the present value of the minimum lease payments is 60% of what the leased asset would cost to purchase. Select one: a. (ii) and (iii) b. (iii) and (iv) c. (i) and (ii) d. (i) and (iii