Estimated liabilities are disclosed in financial statements by: A. footnote to the financial statements. B. showing the amount among the liabilities but not extending to the liability total. C. an appropriation of retained earnings. D. appropriately classifying them as regular liabilities in the balance sheet. An item
Estimated liabilities are disclosed in financial statements by: A. footnote to the financial statements. B. showing the amount among the liabilities but not extending to the liability total. C. an appropriation of retained earnings. D. appropriately classifying them as regular liabilities in the balance sheet. An item
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Activities Required In Completing A Quality Audit
Section: Chapter Questions
Problem 65RSCQ
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Question
Estimated liabilities are disclosed in financial statements by:
A. footnote to the financial statements.
B. showing the amount among the liabilities but not extending to the liability total.
C. an appropriation of retained earnings .
D. appropriately classifying them as regular liabilities in the balance sheet .
An item that is not a contingent liability is:
A. premium offer to customers for labels or box tops.
B. accommodation endorsement on customer note.
C. additional compensation that may be payable on a dispute now being arbitrated.
D. note receivable discounted.
A loss contingency that should be accrued is:
A. note receivable discounted.
B. pending lawsuit
C. tax in dispute
D. estimated claim under a service warranty on new products sold.
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