Question

Signify the most appropriate response for each of the following situations regarding contingent liabilities. 1 The...

Signify the most appropriate response for each of the following situations regarding contingent liabilities.
1 The future event is probable and can be reasonably estimated Multiple Choice Answer Options:
2 The future event is probable but cannot be reasonably estimated a. The liability should be disclosed in a footnote
3 The future event is remote and can be reasonably estimated b. The liability does not need to be recorded or disclosed
4 The future event is remote but cannot be reasonably estimated c. The liability should be recorded in the financial statements
5 The future event is moderately possible and can be reasonably estimated
6 The future event is moderately possible but cannot be reasonably estimated
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
1 The future event is probable and can be reasonably estimated c. The liability should be recorded in the financial statements
2 The future event is probable but cannot be reasonably estimated a. The liability should be disclosed in a footnote
3 The future event is remote and can be reasonably estimated b. The liability does not need to be recorded or disclosed
4 The future event is remote but cannot be reasonably estimated b. The liability does not need to be recorded or disclosed
5 The future event is moderately possible and can be reasonably estimated a. The liability should be disclosed in a footnote
6 The future event is moderately possible but cannot be reasonably estimated a. The liability should be disclosed in a footnote
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial...
With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial Reporting Standards (IFRS) will: Multiple Choice a) Have fewer contingent liabilities accrued than under U.S. GAAP because the IFRS guideline for "probable" is a higher percentage than the U.S. GAAP guideline for "probable". b) Have more contingent liabilities accrued than under U.S. GAAP because IFRS requires all lawsuits, environmental problems, and product warranties that are reasonably estimable to be accrued while U.S. GAAP requires...
A contingent liability should be recorded in the accounts A.if the amount can be reasonably estimated....
A contingent liability should be recorded in the accounts A.if the amount can be reasonably estimated. B.if the amount is due in cash within one year. C.if the related future event will probably occur. D.both b and c. E.both a and c.
Which of the following statements regarding liabilities is false? Payroll taxes are withheld from employee paychecks...
Which of the following statements regarding liabilities is false? Payroll taxes are withheld from employee paychecks and create liabilities since they are payable to other entities. A warranty is an example of a contingent liability since the future obligation depends on a future event. Liabilities require a transfer of assets in the future. A note payable must always be characterized as long-term on the balance sheet.
1. A liability for compensated absences is recognized in the year in which it is earned...
1. A liability for compensated absences is recognized in the year in which it is earned by employees whenever a reasonable estimate can be made of amounts expected to be paid out in the future. accrued only if specific conditions are met. disclosed in a note only. never accrued but may be disclosed if desired. 2. Under the revenue approach to accounting for product guarantees, the liability is recognized at the value of the service to be provided. recognized at...
1. When the occurrence of a liability is dependent on the outcome of some future event,...
1. When the occurrence of a liability is dependent on the outcome of some future event, the liability is referred to as a(n) a) commitment. b) accounts payable. c) contingent liability d) accrued liability. 2. A pension plan that pays employees benefits upon retirement based on how well the investments in the pension plan perform is called a a) defined contribution plan. b) defined performance plan. c) defined investment plan. d) defined benefit plan. 3. How should a liability that...
tate whether you believe each of the liabilities listed below is determinable, estimable, or contingent. 1....
tate whether you believe each of the liabilities listed below is determinable, estimable, or contingent. 1. An automobile company recalled a particular car model because of a possible problem with the brakes. The company will pay to replace the brakes.                                                                       ContingentDeterminableEstimable 2. A large retail store has a policy of refunding purchases to dissatisfied customers under a...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ?...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ? How widespread is the adoption of IFRS around the world? ? What is the possibility of the Securities and Exchange Commission substituting IFRS for GAAP? ? What are the advantages of converting to IFRS? ? What could be the disadvantages of converting to IFRS? ? What is the difference between convergence and adoption? ? When comparing IFRS and GAAP, what are some overall key...
Question 1. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following...
Question 1. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following should be provided for in the financial statements? Legal cases brought against a company Future operating losses Costs of an expected future restructuring of a company Onerous contracts Question 2. Ralph Co aquires 80% of Angus Co on 1 January 20X7 for $780,000. At this date the net assets of Angus Co had a book value of $720,000 and a fair value of $750,000....
For each of the following accounts, signify which financial statement would contain the account balance. 1...
For each of the following accounts, signify which financial statement would contain the account balance. 1 Accounts recievable Multiple Choice Answer Options: 2 Credit card expense a.  Income statement 3 bad debt expense b. balance sheet 4 allowance for doubtful debts c. statement of owner's equity 5 Notes receivable (due in 180 days) 6 interest revenue 7 depreciation expense 8 building 9 equipment 10 accumulated depreciation 11 Loss of disposal of equipment 12 Gain on disposal of equipment 13 Sales revenue...
MATCHING 31-41 Classify the accounts listed below by matching the account name with one of the...
MATCHING 31-41 Classify the accounts listed below by matching the account name with one of the following financial statement sections in which the account would be reported: A. Current Assets B. Fixed Assets C. Intangible Assets D. Current Liability E. Long-Term Liability F. Owners’ Equity G. Revenues H. Operating Expenses I. Other Income/Expense 31. Buildings 32. Accumulated Depreciation - Buildings 33. Depreciation Expense 34. Trademarks 35. Amortization Expense 36. Repairs Expense 37. Land Improvements 38. Gain on sale of equipment...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT