Determine if this shall result in recognition of liabilities 14.Violation of the terms of a contract; it is less than probable but more than remote that there will be outflow of economic benefits a. yes b. no

Determine if this shall result in recognition of liabilities 14.Violation of the terms of a contract; it is less than probable but more than remote that there will be outflow of economic benefits a. yes b. no

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A provision should be recognized when: O a. Present obligation from a past event, outflow that will…

A: Provision means an amount set side now to be payable in future because of some past event and…

Q: Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same…

A: As per IFRS 16, Leases A Gross investment in the lease is = lease payments receivable by lessor in…

Q: 34-Which of the following is NOT a contingent liability? a. Product warranty b. Pending law suit…

Q: Which of the following are criteria for determining whether an embedded derivative is required to be…

A: Solution: As per IAS 39, An embedded derivative is a feature within a contract, such that the cash…

Q: Which of the following statements is incorrect? O a. If the occurrence of the obligation is in…

A: A liability is present obligation, arising from past transaction, which probably has to be paid. If…

Q: what conditions are not necessary to exclude a short term obligation from current liabilities?

A: Current liabilities: It refers to short term financial obligations that are to be discharged within…

Q: An intoxicated individual will enter in a void/voidable/valid contract A. Void B. Voidable C.…

A: An intoxicated individual will enter in a voidable contract. Correct option is b.

Q: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

A: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

Q: 1."A sale of Goods Contract once made can never come to an end".Discuss the above statement with…

A: Sale of goods contract involves 2 parties one is seller and other is buyer Seller sells the goods…

Q: Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same…

A: sale and lease back is a simple financial transaction which allows a person to leave the Asset to…

Q: Direction: Choose the correct answer. 1. A provision is a. An event which is not recognized…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: e reflected i hat such fut Provisions fe

A: Provision needs to be recognised in books of accounts when present obligation arises due to past…

Q: I. A provision is a present obligation which may either be legal or constructive. II. Even if a…

A: As per IFRS 37, A Provision is present obligation that arises from past event, in which outflow of…

Q: IDENTIFICATION 4. These are present obligations of an entity arising from past transactions, the…

A: Obligations means dues for the entity which needs to be paid out or settled to third parties.…

Q: Which statement is true when the outcome of construction contract cannot be estimated reliably?…

A: As per AS-7, the accounting treatment of construction contract with respect to recognition of…

Q: Determine if this shall result in recognition of liabilities 15.Violation of the terms of agreement…

A: As per IAS 37, of IFRS Provisions, contingent liabilities and contingent assets If likelihood of…

Q: The coinsurance penalty promotes which of the following? Application of the deductible All of the…

A: Coinsurance penalty Coinsurance is a fine that the insurance company imposes on the policyholder if…

Q: S1: Pactum commissorium is a stipulation whereby the thing used as security shall automatically…

A: Upon the debtor's failure to pay the principal obligation, automatic appropriation is done by the…

Q: Accrued liabilities are obligations for which there is no external transaction. Select one: True…

A: Accrued liabilities are also called Accrued expenses and these are the expenses that have already…

Q: 10. A provision differs from other liabilities in that there is greater uncertainty about the timing…

A: Provision - It is known as unascertained liability for which amount is not certain. Provision is…

Q: 1. Which is correct concerning capitalization of borrowing cost? If the borrowing is directly…

A: Introduction:- Borrowing costs are capitalized as a part of the cost of the qualifying asset only…

Q: Determine if this shall result in recognition of liabilities 12. violation of the terms of a…

A: As per IAS 37 of IFRS Provisions, contingent liabilities and contingent assets A Provision is a…

Q: The amount of consideration to which the entity expects to be entitled in exchange for transferring…

A: As per IAS 115 Revenue recognition A performance obligation is an promise to customer to transfer…

Q: The following item indicates that the promise good and service are not distinct, except

A: Explanation : Good and service are not highly dependent and not highly interrelated with the goods…

Q: Which of the following is not an issue that must be considered in determining transaction price?

A: The transaction price is the amount of money a seller anticipates receiving in exchange for…

Q: What is the largest estimated possible loss that could arise in a safe payment schedule? no need to…

A: the largest estimated possible loss that could arise in a safe payment schedule are the value of…

Q: If A's capital is deficient but there is a loan payable to B, the right of offset can be applied a.…

A: SOLUTION- EXPLANATION- THE RIGHT OF OFFSET IS THE LEGAL RIGHT OF A PARTNER TO APPLY PART OR ALL OF…

Q: Which of the following liabilities would be considered nonrecourse?

A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…

Q: Determine if this shall result in recognition of liabilities 16.Sale of goods with product warranty…

A: Product warranty means a condition to repair or replace the sold goods for damages within certain…

Q: Which type of contract contingency is most likely to A O Financing contingency. BO Partner approval…

A: The right answer is option a Financing contingency

Q: 14.The loss of available-for-sale investment credit (AFS) cannot exceed the amount by which the fair…

A: Answer: The loss of available for investment credit cannot exceed the amount by which the fair value…

Q: TRUE or FALSE. A distinct good or service can be described as Not interrelated with other goods or…

A: Goods- Goods include things you can typically consume or possess, such as clothing, food,…

Q: Evaluate in terms of the framework, why it is appropriate to capitalize borrowing costs under…

A: The accounting treatment of borrowing costs is governed by IFRS 9 Financial Instruments, which came…

Q: 2 General purpose financial statements are designed to a meet all the information needs of the…

A: As per our protocol we provide solution to the one question only but you have asked multiple…

Q: How does the fair value model differ from the revaluation model?

A: The difference between fair value and revaluation method arises when there is gain in the value of…

Q: Insurance value differs from market value in that? a) the value is only attributed to the…

A: Market value It is a price at which the asset will fetch in the market/ investment value community…

Q: 14-The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

A: Accounting Principles are Rule and Guidelines which are to be followed while recording and…

Question

Determine if this shall result in recognition of liabilities

14.Violation of the terms of a contract; it is less than probable but more than remote that there will be outflow of economic benefits

a. yes

b. no

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Determine if this shall result in recognition of liabilities 5. signing of employment contract by a new employee a. yes b. no
Contingent liabilities must be recorded if: O The future event is probable and the amount owed can be reasonably estimated O The future event is remote O The future event is reasonably possible O The amount owed cannot be reasonably estimated All of the above
Which of the following factors cannot be used to determine an insurer's limit of liability on property coverage? O A. Actual cash value Replacement cost Salvage value Policy limits OB. O C. D. Whiteboard
9. Which one of the following is not a condition for a valid contract? A. There must be no known reasons to prevent its completion. B. There must be at least two competent and identifiable parties. C. It must involve the transfer of a specified amount of cash. D. The terms and conditions must be specified.
A contingent gain can sometimes be disclosed in a footnote A. True B) False
Which of the following case would allow the capitalization of Interest Expense No Case allows this transaction Borrowing Cost Provided the interest is immaterial Only if Management Allows
18. Which of the following statements is false? Select one: a. Simple interest relates to present value whereas compound interest relates to future value b. Simple interest relates to future value whereas compound interest relates to present value c. Simple interest applies when an investor receives payments and compound interest applies when an investor makes payments d. All of the above
Under IFRS, a provision is the same as: a. a contingent liability. b. an estimated liability. c. a contingent gain. d. None of the above.
14 Risk related to counterparty failure to meet their obligation based on the initially agreed terms is referred to as:* A. Operational risk B. Funding risk C. Credit risk D. Fiduciary risk
One of examples of contingent liability is an: *a. Obligations related to product warrantiesb. Possible receipt from a litigation settlementc. Pending court case with a probable favorable outcomed. Tax loss carryforwards
1. A contract of adhesion is a: A. take or leave it contract. B. charging above the maximum interest rate allowed. C. equally at fault. 2. A judicially decreed incompetent will enter into a void/voidable/valid contract. A. Void B. Voidable C. Valid 3. A sales contract has an implied condition precedent/condition concurrent/condition subsequent. A. condition precedent B. condition concurrent C. condition subsequent
93 Conptal Framo PROBLEMS PROBLEM 1: TRUE OR FALSE All changes in an entity's economic resources and claims to those resources result from the entity's financial performance. The qualitative characteristics of useful information apply nly to the financial information provided in the financial statements. . According to IFRS Practice Statement 2 Making Materiality Judgnents, cost is an important consideration when making materiality judgments. T, When making materiality judgments, assessment alone is not always sufficient to conclude that an item of information is not material. Es. Materiality judgments apply only to items that are recognized but not to those that are unrecognized. 6. The more significant the qualitative factors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds. Fz. When making materiality judgments, an entity should judge an item's materiality only on its own and not in combination…