None A constructive obligation differs from a legalobligation because ita) Is created by law._?b) Only applies to government entitiesc) Has no financial impactd) Is created by valid expectations from past.practice

A legal obligation is a promise to make a payment to a third party in accordance with an underlying…

Answered: A constructive obligation differs from…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 5DQ

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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
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
What distinguishes constructive obligations from legal obligations in accounting? a) They arise from established patterns of past practice b) They only exist in written contracts c) They never require recording d) They apply only to tax liabilities
In accordance with AASB 9, the recognition of a financial asset or financial liability will be influenced by considerations as to whether there is a contractual right to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable, or potentially unfavourable, to the entity. Explain what this requirement means.
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
I. In case of conflict between revenue regulation and the provisions of NIRC, the former shall prevail. II. NIRC is a special law, thus in case of conflict with civil code, then the latter shall prevail. o Both are true o Both are false o Only I is true o Only II is true
In taxation: I. What is Inferior to the Non-Impairment Clause of the constitution and Superior to the Non-Impairment Clause of the constitution. II. What do you mean by “receipt of benefits is conclusively presumed”?
TRUE OR FALSE 1. PFRS 4 SUPERSEDES PFRS17 2.PFRS 17 APPLIES TO REINSURANCE CONTRACTS3.INCOME SERVICE IS RECOGNIZED IN OTHER COMPREHENSIVE INCOME4. PFRS17 APPLIES TO INVESTMENT CONTRACTS WITH DISCRETIONARY FEATURES REGARDLESS IF THE ENTITY ALSO ISSUES INSRANCE CONRACS OR NI

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A constructive obligation differs from a legal obligation because it a) Is created by law. _? b) Only applies to government entities c) Has no financial impact d) Is created by valid expectations from past. practice