need to explain In the preparation of a schedule of safe payments, cash withheld for future liquidation expenses, and unrecorded liabilities that may be discovered is treated as: a. Operating expenses b. Other Expense c. Loss on realization d. Possible loss

need to explain In the preparation of a schedule of safe payments, cash withheld for future liquidation expenses, and unrecorded liabilities that may be discovered is treated as: a. Operating expenses b. Other Expense c. Loss on realization d. Possible loss

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: Metlock Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: 1.Cost of goods sold can be calculated as follows;Cost of goods sold =Beginning inventory +Net…

Q: Accumulated Depreciation is a permanent account. True False

A: Temporary accounts are those which are closed at the end of every period and not shown in the…

Q: Bad debts under the allowance method are A reserve created to meet expected next period expense. An…

A: To accurately answer the question about bad debts under the allowance method, we need to understand…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: Describe when and how a net operating loss carryforward and a net operating losscarryback are…

A: Net Operating Loss Carryforward: The net operating loss is considered as negative taxable income.…

Q: Which of the following is not considered a characteristic of a liability? O Present obligation. O…

A: Liability means the amount which is to be paid to an outsider by business. It is the present…

Q: inherent risk

A: Inherent risk is the risk of errors or frauds that may occur irrespective of the operation of…

Q: Which one of the following is not one of the factors in computing depreciation? Cost price…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: 3. A liability created for receiving cash for future services to be provided is termec Oservice…

A: The accrual basis accounting records the revenue and expenses as soon as they are incurred…

Q: Which of the following is correct when recording the disposal of equipment for a gain? Group of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: As prepaid assets are used to generate revenue, an adjustment is necessary to reduce the previously…

A: Prepaid assets are those assets which consists of advance payments for goods and services that are…

Q: The modified accrual basis ______. Multiple select question. What solution is it below? (A)…

A: Accrual basis and cash basis are two different methods of accounting used in financial reporting.…

Q: Which of the following contingencies is usually accrued? A risk of loss from fire B discovery of…

A: A contingency arises when there's a state of affairs for which the final results is unsure, and…

Q: the total debits in the statement of realization and liquidation exceeds the total credits, there is…

A: THE CORRECT ANSWER IS (A) NET LOSS FOR THE PERIOD , To calculate a realized gain or loss, take the…

Q: hen assets that have been sold and accounted for by the installment method are subsequently…

A: Inventory is the current asset posted on the balance sheet of the company.

Q: In liquidation, the sale of the non-cash assets is called a. realization b. net proceeds c. gain…

A: Answer - First of all in Liquidation Process there are four steps. Second step in Liquidation…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: Assume that a business is headed for certain bankruptcy and it is evident that its liabilities…

A: Generally Accepted Accounting Principles (GAAP) or US GAAP are the collection of accounting…

Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

no need to explain In the preparation of a schedule of safe payments, cash withheld for future liquidation expenses, and unrecorded liabilities that may be discovered is treated as: a. Operating expenses b. Other Expense c. Loss on realization d. Possible loss

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

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

The rights of financial claim to the assets are called equities Question 9 options: True False
Explain the appropriate accounting treatment required when a change in depreciation, amortization, or depletion method is made.
Amortization expense should be: included in income from continuing operations. included in other income and expense. disclosed in the notes to the financial statements only. none of these choices.
A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
Which one of the following disclousures is required by generally accepted accounting principle? a. Depreciation expense for each major class of asset b. Balances of major classes of depreciable assets, by nature or function c. Accumulated depreciation on each depreciable asset d. An explanation of why the depreciation method used was selected by management
What controversy relates to the accounting for net operating loss carryforwards? What is your opinion on the matter?
Activity 13. Determining the Effects of Omissions. For each of the following situations, state the effect to total assets whether it is overstated or understated or not affected. a. Failure to recognize Interest income earned but not yet collected b. Failure to recognize the expired insurance. C. Accrued interest on loans was omitted. d. Failure to recognize depreciation. e. Taxes incurred but not paid was not recorded. f. The earned portion of unearned revenue was not recognized.
Which of the following will be affected by an increase in the provision for doubtful debts? Gross profit Operating profit Closing inventory Net book value of non-current assets
Which method of the matching principle is used when a company recognizes depreciation expense on the income statement? Group of answer choices A. Installment method B. Systematic and rational allocation C. Immediate recognition D. Associating cause and effect
A statement of affairs measures a deficiency – traceable to unsecured creditors without priority – as the difference between the estimated net realizable value of the assets and the amount due those creditors True or False
Which one of the following options is correct about current assets Select one: a. Current assets are long term assets b. Current assets are not recorded inside the balance sheet rather in the notes section. c. Account receivable & cash are current assets d. Current assets are depreciable.
Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.