A contingency that need not be disclosed in the financial statements or in the notes thereto is: A. pending litigation B. possibility of strike. C. deficiency tax assessment. D. note receivable discounted. Of the following items, the one which should be classified as a current liability is: A. an accommodation endorsement. B. a cash dividend declared before the balance sheet date when the date of record is subsequent to the balance sheet date. C. unfunded past service cost of a pension plan. D. dividends in arrears on cumulative preferred stock. Which of the following statements is true concerning contingent liabilities? A. Such liabilities should include obligations of known existence but of unknown amount B. If the definite amount is involved, it is not a contingent liability. C. Such liabilities are generally reported and totaled with other liabilities to make up the liability section of most balance sheets. D. Such liabilities should include obligations known in amount but unknown in existence.
A contingency that need not be disclosed in the financial statements or in the notes thereto is: A. pending litigation B. possibility of strike. C. deficiency tax assessment. D. note receivable discounted. Of the following items, the one which should be classified as a current liability is: A. an accommodation endorsement. B. a cash dividend declared before the balance sheet date when the date of record is subsequent to the balance sheet date. C. unfunded past service cost of a pension plan. D. dividends in arrears on cumulative preferred stock. Which of the following statements is true concerning contingent liabilities? A. Such liabilities should include obligations of known existence but of unknown amount B. If the definite amount is involved, it is not a contingent liability. C. Such liabilities are generally reported and totaled with other liabilities to make up the liability section of most balance sheets. D. Such liabilities should include obligations known in amount but unknown in existence.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A contingency that need not be disclosed in the financial statements or in the notes thereto is:
A. pending litigation
B. possibility of strike.
C. deficiency tax assessment.
D. note receivable discounted.
Of the following items, the one which should be classified as a current liability is:
A. an accommodation endorsement.
B. a cash dividend declared before the balance sheet date when the date of record is
subsequent to the balance sheet date.
C. unfunded past service cost of a pension plan.
D. dividends in arrears on cumulative preferred stock .
Which of the following statements is true concerning contingent liabilities?
A. Such liabilities should include obligations of known existence but of unknown amount
B. If the definite amount is involved, it is not a contingent liability .
C. Such liabilities are generally reported and totaled with other liabilities to make up the
liability section of most balance sheets.
D. Such liabilities should include obligations known in amount but unknown in existence.
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