Question

QUESTION 15 In disclosing liabilities, a reporting entity: discloses on the basis of the current/non-current liability...

QUESTION 15


In disclosing liabilities, a reporting entity:


discloses on the basis of the current/non-current liability dichotomy

has a choice, based on the notions of relevance and reliability to disclose liabilities either on the basis of the current/non-current liability dichotomy or on the basis of order of liquidity

has a choice, based on the principle of conservatism to disclose liabilities either on the basis of the current/non-current liability dichotomy or on the basis of order of liquidity

discloses on the basis of order of liquidity

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
In disclosing liabilities, a reporting entity has a choice, based on the notions of relevance and reliability to disclose liabilities either on the basis of the current/non-current liability dichotomy or on the basis of order of liquidity.
The reporting entities have a choice to disclose liabilities based on the most relevant and reliable method of presentation. The disclosure must result in providing information to the stockholders in the most relevant manner.
Option B is correct
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
QUESTION 1 The most common type of business organisation is a. non-for-profit organisation b. partnership c....
QUESTION 1 The most common type of business organisation is a. non-for-profit organisation b. partnership c. company/corporation d. sole proprietorship 1 points    QUESTION 2 A business financial statement is meant to convey information about the business to _________________ users in order to help them make decisions about the business. a. internal and external b. internal only c. external only d. none of the above 1 points    QUESTION 3 Which of the following is an advantage of being a...
Multiple Choice 1) On December 15 of the current year, Conrad Accounting Services signed a $40,000...
Multiple Choice 1) On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received? • Going-concern assumption. • Monetary unit assumption. • Revenue recognition principle. • Business entity assumption. • Cost principle. 2) On January 1, a company...
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....
SUMMARY THESE PARAGRAPHS Government Grants U.S. GAAP contains limited guidance on government grants. IFRS deals with...
SUMMARY THESE PARAGRAPHS Government Grants U.S. GAAP contains limited guidance on government grants. IFRS deals with this subject in IAS No. 20, para. 12), which is based on the principle of matching: Government grants should be recognized in income over the periods necessary to match them with the related costs, which they are intended to compensate. The inappropriateness of IAS No. 20ís principle becomes clear when applied to grants for the purchase of fixed assets. The grant is treated as...
UTS: Accounting for Business Decisions A 20 MC questions: The primary purpose of the closing entries...
UTS: Accounting for Business Decisions A 20 MC questions: The primary purpose of the closing entries is to: assure that adjusting entries balance b. calculate the net balance of non-current assets ensure that all assets and liabilities are recognised in the appropriate period to measure revenue, expense, and dividend accounts in the next period prove the equality of the debit and credit entries in the general journal If a company uses the direct write off method of accounting for bad...
The Volkswagen Group adopted International Accounting Standards (IAS, now International Financial Reporting, or IFRS) for its...
The Volkswagen Group adopted International Accounting Standards (IAS, now International Financial Reporting, or IFRS) for its 2001 fiscal year. The following is taken from Volkswagen’s 2001 annual report. It discusses major differences between the German Commercial Code (HGB) and IAS as they apply to Volkswagen. General: In 2001 VOLKSWAGEN AG has for the first time published its consolidated financial statements in accordance with International Accounting Standards (IAS) and the interpretations of the Standing Interpretations Committee (SIC). All mandatory International Accounting...
1.An obligation of a business that represents the claims of others against the assets of he...
1.An obligation of a business that represents the claims of others against the assets of he business is called a(n) * A.asset B.liability C.expense D.revenue E.equity 2.The general journal provides a place for recording * A.the amount of each debit and credit B.an explanation of the transaction C.the transaction date D.the names of the accounts involved E.All of these 3.An exchange of economic consideration between two parties that causes a change in assets, liabilities or equity is called * A.prepaid...
Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES...
Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES / OPPORTUNITIES One of the major challenges is to change the people’s perspective of PepsiCo as an unhealthy soft drink producer. Due to the link of soft drinks to obesity and diabetes, the new CEO wants to reinvent Pepsi as a healthy food producer rather than a snacks producer. Although this is a good plan for the PepsiCo to consider, people who are used...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All of those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT