Which of the following is not considered as a characteristic of a liability?Present obligationArises from past eventLiquidation is reasonably expected to require use of current assetsResults in an outflow of resources

The balance sheet comprises two-part, what the company owns (Assets) and what the company owes…

Answered: Which of the following is not…

Business

Accounting

Which of the following is not considered as a characteristic of a liability?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8MC: Which of the following best describes a contingent liability that is likely to occur but cannot be...

See similar textbooks

Related questions

Q: 14% term note, due 2017 11% term note, due 2019 30,000.00 1,070,000.00 8% note, due in 11 equal…

A: Current Liabilities are the amount which is due for payment within a pwriod period of one year or in…

Q: Problem 7 Angat Buhay, a charitable organization in Muntinlupa City, has a standing agreement with…

A: Answer:- Ethical issue meaning:- Ethical issue:- BBM is not maintaining the proper cash balance.…

Q: The company's total assets are $40,000. The following is a listing of the company's accounts and…

A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…

Q: ASSETS Cash Accounts Receivable Inventory Plant and equipment Accumulated Depreciation TOTAL ASSETS…

A: Liquidity ratios is one of the important type of ratio used by the business. Current ratio and Quick…

Q: KreamyKeyk Company, in its first year of operations, has the following difference between the…

A: 1. Deferred tax liability to be reported in KreamyKeyk's statement of financial position at December…

Q: 5 345 2 hing x (11) Your SID=462122509 Using the MACRS rates from the following table, what is the…

A: Business organizations are required to charge the depreciation expense so that the assets are shown…

Q: Zydus corp Balance Sheet as at December 31, 2020 and 2019 reported accumulated depreciation balances…

A: Depreciation was an method used in accounting where it records the assets value wih deductions after…

Q: . In what two ways is accrual accounting accomplished?

A: The accrual basis accounting records the revenue and expenses when they are incurred.

Q: Packed Corporation owns 70 percent of Snowball Enterprises' stock. On January 1, 20X1, Packed sold…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: Problem 9 Prepare a correcting entry for each of the following accounting errors: a. Debited…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Which of the following should be classified as noncurrent liability? Unearned revenue Accrued…

A: >Non current liabilities are the liabilities that are to be repaid in long term, say, after 1…

Q: Service revenue 110,500 Salary expense 44,850 Supplies expense 3,225 Insurance expense 1800…

A: Lets understand the basics. Income statement is prepared by management to know income expense and…

Q: Question 1 Which of these would be a reason for adopting a predominantly substantive approach?…

A: An auditor should choose a predominantly substantive approach when he is aware about the internal…

Q: 2. Which of the following is not a financial asset? a. investment in bonds b. investment in held for…

A: Introduction: Financial assets are liquid assets with a contractual claim or ownership in an…

Q: Problem 6 Gobyerno practices medicine under the business title Gobyerno, M.D. During May her medical…

A: The journal entries are prepared to record business transactions on regular basis. The assets and…

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

Q: On December 31, 2020, Allan Company had the following cash balances: Cash on hand and in bank…

A: Answer : P5,913,000

Q: A farm that produces corn is looking to hedge their exposure to price fluctuations in the future. It…

A: Loss on future contract = [Actual market price on Sept 30 - Future contract per bushel] x 44,000 =…

Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909…

A: IRR measures the rate at which the investment (cash outflow) has generated the cash inflow. More the…

Q: Roger and Serena had been competitors and have decided to combine their independent businesses to…

A: A partnership is a business operated by two or more persons referred to as partners. The partners…

Q: The Wake Sally worked as a project manager for a high-tech electronics firm in the late 1980s. The…

A: The traditional 'Irish wake' is a unique funeral practice that have events appear jubilant and…

Q: Farrell and Jimmy enter into a partnership agreement on May 1, 2018. Farrell contributes $30,000 and…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: How are enterprise funds reported in the fund financial statements? Separate columns are…

A: Enterprises fund is different fund from all other government funds. It is separate fund that sales…

Q: Gobyerno practices medicine under the business title Gobyerno, M.D. During May her medical practice…

A: Journal Entry - Under this organization makes the records of Monetary items, there are debit and…

Q: Develop a worksheet simulation for the following problem: The management of Montemayor…

A: Mean profit is the average if all the profits which are calculated by multiplying the profit per…

Q: E2-4 (Algo) Determining Financial Statement Effects of Several Transactions LO2-3 The following…

A: Assets=Liabilities+Stockholder's Equity

Q: Gordon Miller's job shop has four work areas, A, B, C, and D. Distances in feet between centers of…

A: Total Material handling cost of the layout is calculated by following manner- Total material cost=…

Q: A ladies' suit selling for $150 is marked down 35% for a special promotion. It is later marked down…

A: Lets understand the basics. Management for the purpose of attracing more sales, give discount terms…

Q: PLEASE SKIP IF YOU ALREADY ANSWERED. I WILL UPVOTE

A: Unearned Revenue is the amount of advance payment received from the customer but has yet to deliver…

Q: Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: 3. Define the terms revenues and expenses.

A: The terms revenue means-Revenue is the money generator from normal business operations, calculated…

Q: XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain…

A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…

Q: Ali Mamat Enterprise Trial Balance as at 31 December 2019 Particulars Sales Purchases Salaries Motor…

A: Balance Sheet : It is a financial Statement which re-present the company / business financial…

Q: QWE Company provided the following information for the current year: Cash, January 1 - P320,000; Net…

A: The question is related to the Cash Flow Statement. Cash Flow Statement is summary of cash receipts…

Q: Record the following transactions directly in the T-accounts without using a journal. Use the…

A: Ledger accounts are necessary to maintained and updated by the company and recorded when so ever a…

Q: On its second year of operations, BBQ Co. thought of expanding its business. In order to generate…

A: Factoring: Factoring is a type of business loan in which the business organization sells its…

Q: ABC Company provided the following information for the year ended December 31, 2020: Share Capital…

A: Statement of changes in shareholders' equity represents the transactions during the year that has…

Q: Appropriation account

A: Appropriation accounts keep aside money/ profits for various specific purposes. For example dividend…

Q: of account balances. Accounts Payable $39700 Dividends $ 21900 Accounts Receivable 67900 Equipment…

A: A balance sheet is a document that investors and other stakeholders use to obtain a sense in respect…

Q: Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most…

A: Gross Profit is the difference between the Selling price of the good or service and all the expenses…

Q: In December 2005, SHOWEE Company exchanged an old machine, with a cost P6,000,000 and 50%…

A: Here discuss about the details of exchange of machinery which can be incurred the exchange price…

Q: 21- Sent a bill to R. Hernandez, P2, 500 for car service rendered at his wedding. 23- Gas and oil…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

Q: How much is the business tax if the business is radio station Narcissus owns a non-VAT registered…

A: As per National Internal Revenue Code of Phillipines and Republic act following is the correct…

Q: Compute Charlotte's child and dependent tax credit. Charlotte's child tax credit is $8,000, of which…

A: Given in the question: The Childs which are dependent upon Charlotte are four child’s, the age of…

Q: On January 1, 2011, Plank Company purchased 80% of the outstanding capital stock of Scoba Company…

A: Consolidation- Consolidation is the process of merging two or more enterprises, organizations, or…

Q: 11. What is an accrued expense? Give three examples.

A: Introduction: An expense is a type of outlay that is debited from income to determine net income.…

Q: A. the results of the subsidiary for the period of time that it was controlled to be accounts.…

A: AASB stands for Australian accounting standards board and belongs to the Australian government…

Q: AB Division for National Company has a rate of return on investment of 28% and an investment…

A: Profit margin can be calculated by dividing return on investment by investment turnover ratio.

Q: On March 1, Harris Company paid $2,400 for one year of advertising in advance. Harris debited…

A: Whenever a company paid for any expenses in advance, it will become their asset which is recorded as…

Q: Presented below are the balance of the assets, liabilities, owner's equity, revenues, and expenses…

A: Income statement: Income statement is the financial statement which shows the financial performance…

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 is not considered as a characteristic of a liability?
Present obligation
Arises from past event
Liquidation is reasonably expected to require use of current assets
Results in an outflow of resources

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is a characteristic of a current liability but not a long-term liability? a. Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities. b. Unavoidable obligation. c. Transaction or other event creating the liability has already occurred. d. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
Which of the following is not a criterion that must be met for an item to be classified as a liability? A certain cash payment will occur in the future. A sacrifice will require the entity’s assets or services. There is a probable future sacrifice. There is a present obligation that results from a past transaction.
What disclosure is required for a probable loss contingency?
What disclosure is made if a loss contingency is reasonably possible?
Which of the following does not require disclosure in the financial statements? There is a present obligation that probably requires an outflow of resources that can be measured reliably. There is a present obligation that probably requires an outflow of resources but the amount cannot be measured reliably. There is a possible obligation or a present obligation that may, but probably will not require an outflow of resources There is a possible obligation or a present obligation where the likelihood of an outflow of resource is remote.
What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or damaged due to fortuitous event, particularly as to the liability of the debtor in an obligation.
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.
Which of the following best describes a contingent liability that is likely to occur but cannot be reasonably estimated? A. reasonably possible B. probable and estimable C. probable and inestimable D. remote
Which one of the following situation where a performance obligation is satisfied over time ? a- The entity's performance creates an asset that the customer controls as it is created b- The customer does not receive or consume the benefits provided by the entity's performance until the obligation is completely satisfied c- The entity does not have an enforceable right to payment for the performance that has been completed to date d- The entity's performance creates an asset which has an alternative use to the entity
Short-term obligations are reported as noncurrent if the entity has a discretion to refinance it as long-term. True False
Which of the following does not require disclosure in the financial statements? choices: There is a present obligation that probably requires an outflow of resources that can be measured reliably. There is a present obligation that probably requires an outflow of resources but the amount cannot be measured reliably. There is a possible obligation or a present obligation that may, but probably will not require an outflow of resources There is a possible obligation or a present obligation where the likelihood of an outflow of resource is remote.