Which of the following statements is correct? Select one:

Q: if the shareholders position is not protected by a contract unlike the provider of debt how is it in…

A: A shareholder seems to be a person or organization who holds stock in a corporation. Shareholders…

Q: none of the choices?

A: IFRS 9-:IFRS 9 is simply an International Financial Reporting Standard circulated by the…

Q: True/False Companies do not report changes in the fair value of available-for-sale debt securities…

A: Available for sale securities are securities which are held with the intention of selling them…

Q: IFRS requires companies to measure their financial assets at fair value except when based on:(a)…

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: Which one of the following unsecured liabilities has the highest priority when an insolvent company…

A: Insolvency refers to the company being unable to pay its all its debts or when the liabilities of a…

Q: Why do you suppose accounting regulations requirecompanies to report paper losses or gains from…

A: This Statement establishes standards of accounting for exchange-traded futures contracts (other than…

Q: When the amount of a contingent liability cannot be reasonably estimated but its likelihood is…

A: There are three types of contingent liabilities and their treatment   SR. NO. TYPE TREATMENT…

Q: When an entity breaches under a long-term loan agreement on or before the end of the reporting…

A: If an entity expects debt to be settled in the normal operating cycle, it is classified as Current…

Q: andy Bank holds a short-term note from General Store, Inc., that General Store expects to refinance.…

A: Refinancing: Refinancing of debt refers to the process of applying for new debt instrument that has…

Q: of the following would be classified as non-current liability? * a. Unearned revenue b. Mandatory…

A: Solution: Non current liabilities are those liabilities are not due to be paid in next one year.…

Q: Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent…

A: solution : Which of the following statement/s are incorrect? Answer : Only statement (iii) is…

Q: Assume that Lehman’s accounting for the Repo 105 transactions met the requirements of GAAP. However,…

A:

Q: All of the following are true of the effect of fair value accounting on the financial statements…

A: Fair value accounting: uses the Current Market Values as the basis for Recognizing Assets &…

Q: Which of the following characteristic of a liability, if satisfied, would prompt the classification…

A: Current liabilities are a company's short-term financial obligations that are due within one year or…

Q: If a firm does not provide for accrued liabilities, what problems may thefirm face?

A: Assuming this is the case, at that point. The Organization has not gotten the accrued liabilities.…

Q: Which of the following statements is true?   a. If any portion of a non-current liability is to be…

A: current liability -  liabilities that are to be paid within one year are current liabilities.…

Q: Liabilities are obligations of a company to creditor. Select one: True False

A: Liabilities are obligations of a company to creditor. Answer: False Explanation: A liability is a…

Q: Please answer “True” or “False” to the following statements.   Only long-term debt is first in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: What is the difference between Regulation S–K and Regulation S–X?a. Regulation S–K establishes…

A: Definition:   Securities Exchange Commission (SEC): This is the government agency governs the…

Q: FASB allows debt to be shown at its fair market value. Consequently, if a company in financial…

A: Financial Accounting Standards Board (FASB) The FASB, located in Norwalk, Connecticut, is an…

Q: ted. Does the expected loss meet the definitio

A: Conceptual Framework A conceptual framework is a written or visual representation of how variables…

Q: The fair value option allows a company to report most financial instruments at fair value at each…

A: Fair value option is one of the option available to the company to value its financial instruments…

Q: Which of the following statements is false?a. A contingent liability should be disclosed in the…

A: A contingent liability is a liability which occurrence is depending on the outcome of a uncertain…

Q: Is there an obligation to cease trading when a company is insolvent? If there is not, what are the…

A: Insolvency If the company faces sever financial crunch into the business or face cash shortage into…

Q: Companies are not required to accrue all contingent liabilities on their balance sheets because the…

A: Accounting for a contingency: The basic concept is that you should only record/accrue for a loss…

Q: Companies are not required to accrue all contingent liabilities on their balance sheets because the…

A: Introduction: Contingent liability refers to a claim that may or may not materialize in the future.…

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: Reported earnings become overstated as a result of failure to record which of the following: a. the…

A: THIS is one of the most common  in financial statement. there may be a case of manipulation of…

Q: Which of the following may not be an effect of VAT on the accounting records of a company?   i. The…

A: VAT refers to indirect tax imposed on the sale and purchase of goods and services.

Q: Why did Syntel Microsystems include some long-term debt in the current liability section?

A: Long-term debt:   Long-term debts are obligations that the company needs to pay after at least one…

Q: Which of the following is not an essential characteristic of a liability? a. Legal enforceability b.…

A: Liabilities shall always form part of balance sheet. Liabilities are the debts company has taken…

Q: Under which circumnstances should a company disclose contingent liabilites in the footnotes of the…

A: Note: The answer for question first is given above. For remaining, please post separately. Thanks!…

Q: Discuss the arguments for each position. Some individuals maintain that the only proper accounting…

A: The argument for this statement is this that whether to use current value or not is totally depends…

Q: hich of the following may not be an effect of VAT on the accounting records of a company?   The…

A: VAT is the value added tax which is applied to all sales of services and imports, as well as to the…

Q: The current portion of long-term debt should a.be reclassified as a current liability b.be paid…

A: The liabilities which are payable within one year are considered but the liabilities having life…

Q: Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent…

A: Solution: Following statements are correct: 1. An enterprise should not recognize a  contingent…

Q: which of the following instances would a liability that would otherwise be presented as current is…

A: Liability is an obligation that has to be paid by the company by sacrificing the assets. It is…

Q: Which of the following is a financial liability? a. Deferred revenue b. A warranty obligation c. A…

A: Solution Concept As per the relevant accounting standard Financial liability is…

Q: When an entity breaches a covenant under a long-term loan agreement on or before the end of the…

A: International Accounting Standards (IAS) 1 deals with the "classification of liabilities as current…

Q: Which of the following is correct about contingent liabilities and provisions?     The terms are…

A:

Q: An entity has made an error in the balance sheet. During the current year, a bond has been…

A: it is important that financial statement in order to make investment decisions by the investors. the…

Q: When a company acquires an affiliated company’s debt instruments from a third party, how is the gain…

A:

Q: Short-term obligation refinanced on a long-term basis at the end of the reporting period is a…

A: A liability can be classified as either Current or Long term term liability. Current Liabilities…

Q: A company can have a liability even if the amount of the obligation is unknown. O True O False

A: Liabilities are current obligations as a result of past transactions or events. Liabilities are…

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.