33. Contingent liabilities are:* Disclosed in the notes unless the possibility of an outflow of economic benelits is remote O Recogrised in the statement of financial position as an experne O Never disclosed in the notes to the financial staterments Recorded as a temporary lability in the statement of financial position

33. Contingent liabilities are:* Disclosed in the notes unless the possibility of an outflow of economic benelits is remote O Recogrised in the statement of financial position as an experne O Never disclosed in the notes to the financial staterments Recorded as a temporary lability in the statement of financial position

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 13MC: Which of the following would be included in the financing section? A. loss on sale of investments B....

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True (t) or False (f) _____ Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur)
Charges in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following? Cash Flow Hedge Far Value Hedge a b с d yes no yes no yes yes no no
Which of the following is generally associated with payables classified as A/P? (A) Periodic payments of interest (B) secured by collateral a. Neither b. A and B c. A d. B
Which of the following is stated correctly? a. Current liabilities follow non-current liabilities on the statement of financial position under GAAP but non-current liabilities follow current liabilities under IFRS. b. IFRS does not treat debt modifications as extinguishments of debt. c. Bond issuance costs are recorded as a reduction of the carrying value of the debt under GAAP but are recorded as an asset and amortized to expense over the term of the debt under IFRS. d. Under GAAP, bonds payable is recorded at the face amount and any premium or discount is recorded in a separate account. Under IFRS, bonds payable is recorded at the carrying value so no separate premium or discount accounts are used.
Which of the following is a counterbalancing error? O bond premium under-amortized O understated depletion expense overstated depreciation expenses prepaid expense adjusted incorrectly
Which of the following is not generally correct about recording a sale of a debt security before its maturity date? O An entry must be made to amortize a discount to the date of sale. O The entry to amortize a premium to the date of sale includes a credit to the Premium on Debt Investments account. O A gain or loss on the sale is reported as other revenue or expense. O Accrued interest will be received by the seller even though it is not an interest payment date.
8. When accounting for contingent liabilities IFRS GAAP defines ‘probable’ as a. likely b. more likely than not c. possible d. none of these
The presentation of current and non-current liabilities in the statement of financial position (balance sheet): a. is shown only on GAAP financial statements. b. is shown on both a GAAP and an IFRS statement of financial position. c. is always shown with current liabilities reported first in an IFRS statement of financial position. d. includes contingent liabilities under IFRS.
1. Subsequent to initial recognition, accounts receivable should be carried at a. Face Value c. Maturity Value b. Net Realizable Value d. Present Value 2. Loans and receivables are nonderivative financial assets a. With fixed or determinable payments that are not quoted in an active market. b. With fixed or determinable payments that are quoted in an active market. c. Without fixed or determinable payments that are not quoted in an active market. d. Without fixed or determinable payments that quoted in an active market. 3. Subsequent to initial recognition, loans and receivables are measured at a. Cost b. Amortized cost using straight line method c. Amortized cost using effective interest method d. Fair value 4. Trade receivables are classified as current assets when they are reasonably expected to be collected a. Within one year. b. Within the normal operating cycle. c. Within one year or within the normal operating cycle whichever is shorter d. Within one year or within the normal…
30. The following statements are incorrect, except: a. Issued instruments are classified as liabilities or equity in accordance with the legal form of the contractual arrangement and the definitions of the financial liability and an equity instrument. b. A preference share that will be redeemed by the issuer for cash on a future date is a financial liability. c. IAS 37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, and those resulting from financial instruments that are carried at fair value. d. Issued instruments are classified as liabilities or equity in accordance with the management’s designation of the contractual arrangement.
#34
Which of the following situations does not base an accounting measure on a present value? Prepaid insurance , leases, pensions or sinking funds