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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 7GI

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How can the accounting concept of materiality be applied to the recognition and disclosure of contingent liabilities?
Which of the following best describes the application ofgenerally accepted accounting principles to the valuation ofaccounts receivable?
How does the concept of uniformity relate to comparability in the accountingliterature?
How does the revenue-expense approach differ from the asset-liability approach fordefining accounting elements?
How can the accounting concept of materiality be applied to the recognition and disclosure of contingent liabilities? Explore the factors that accountants should consider when determining the appropriate level of detail to include in financial statements regarding potential future obligations.
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Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? Group of answer choices Amount of loss is reasonably estimable and event occurs infrequently. Amount of loss is reasonably estimable and occurrence of event is probable. Event is unusual in nature and occurrence of event is probable. Event is unusual in nature and event occurs infrequently.
Is internal accounting information primarily historical orfuture-oriented? How does that compare with financialaccounting information?
How do audit procedures for prepaid expenses and accrued liabilities also provide audit evidence about related expense accounts?
Explain the concept of conservatism in accounting. How does the principle of conservatism affect the valuation of assets and liabilities?
How can a misstatement in one financial statement, whether intentional or not, affect a presentation in another financial statement?
Comment on the statement that materiality is in the eye of the beholder. How does this statement relate to the discussion in this chapter of how to gauge materiality in assessing financial statement restatements? Is materiality inconsistent with the notion of representational faithfulness?

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How can the accounting concept of materiality be applied to the recognition and disclosure of contingent liabilities?