Expert need your help A constructive obligation differs froma legal obligation because it1) Is created by law_ ?2) Only applies to government entities3) Has no financial impact4) Is created by valid expectationsfrom past practice

Here's the breakdown of the options:Is created by law - This refers to legal obligations, not…

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Financial Accounting Intro Concepts Meth/Uses

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ISBN:9781285595047

Author:Weil

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Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 5Q

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17. Gain contingencies should a. be accrued if they are probable and can be reasonably estimatedb. not be accrued in the accountsc. be accrued only if they are the result of litigation or government appropriationd. not be accrued or disclosed in the footnotes
In explaining the meaning of obligation in the definition of a liability, the Conceptual Framework states: A. That an obligation is a duty or responsibility that an entity has no practical ability to avoid B. Than an obligation can arise from a duty or responsibility conditional on a future action that the entity itself may take, if the entity has no practical ability to avoid taking that action C. That an obligation can arise from an entity's customary practices, published policies or specific statements, if the entity has no practical ability to avoid those practices, policies or statements D. All of the above
Which of the following is not a liability? a) Amounts owed to shareholders as capital b) Government grants repayable c)Rebates payable d) Debentures
For a liability to be recognised within the financial statements, it needs to be reasonably apparent that an obligation to an ____________exists. Select one alternative: legal obligation external party another party counter party
With reference to IAS 37, identify the correct statements from the following: I. A contingent asset should be disclosed by note if an inflow of economic benefits is probable. II. Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise. III. No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote. a- I, II and III b- I and II only c- II and III only d- I and III only
Section 1221(a) of the Internal Revenue Code defines what: a. is a capital asset. b. is not a capital asset. c. is a ordinary gain. d. is capital gain
Explain thoroughly why it is the answer.
All of these statements about the selection of a fiduciary are correct EXCEPT A) an individual fiduciary is more likely to be appropriate for the administration of a small estate or trust. B) only an institutional fiduciary is duty-bound to avoid a conflict of interest. C) both an individual and institutional fiduciary owe a duty of impartiality in balancing the needs of the beneficiaries for income and capital appreciation. D) an institutional fiduciary is more likely to have the financial and managerial sophistication needed to exercise independent judgment.
What is the requirement on Federal Truth-in-Lending (FTL)?
Under PFRS 15, in which of the following instances will the revenue from contracts with customers be recognized at a point in time instead of over time? Group of answer choices When the entity’s performance creates or enhances an asset that the customer controls as the asset is created. When the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs. When the entity has transferred physical possession and legal title to the asset to the customer When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
Which statement is incorrect in the measurement of a provision? *a. The risks and uncertainties that inevitably surround many events and circumstances shall be taken into account in reaching the best estimate of a provisionb. Where the effect of the time value of money is material, the amount of a provision shall be the present value of the expenditure expected to settle the obligationc. Future events that may affect the amount required to settle the obligation shall be reflected in the amount of the provision where there is sufficient objective evidence that the future events will occurd. Gains from expected disposal of assets shall be taken into account in measuring a provision
Under PFRS 15, which of the following factors indicates that the revenue from contracts with customers is recognized from the moment the entity satisfies the performance obligation at a point in time? When the entity has transferred physical possession of the asset to the customer. When the customer simultaneously receives and consumes all the benefits provided by the entity as the entity performs. When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. When the entity’s performance creates or enhances an asset that the customer controls as the asset is created.

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A constructive obligation differs from a legal obligation because it 1) Is created by law _ ? 2) Only applies to government entities 3) Has no financial impact 4) Is created by valid expectations from past practice