Question: Classify each of following items as a contingent liability, a provision or neither: (a) an unresolved lawsuit against the entity for copyright infringement? (b) allowance for doubtful debts? ********correct answer please*********

Q: Ch. 16 _______ specifies an action that the company agrees to take or a condition the company must…

A: A negative covenant is a bond covenant preventing certain activities A 'positive covenant' is a…

Q: Question: Classify each of following items as a contingent liability, a provision or neither: (e) an…

A: Contingent liabilities are those liabilities which may or may not arise in future. These needs to be…

Q: 18-Which one of the following category unearned revenue belong to? a. Limited liability b. Lon-term…

A: The Unearned revenue is the revenue received in cash but not earned yet.

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

A:

Q: Legal fees incurred in successfully defending a patent have which of the following impacts?

A: Patent: patent is an intangible asset state the exclusive right of an innovation done by the company…

Q: subject accounting :-     QUESTION 1 With reference to statutory provisions and decided cases,…

A: Question 1:Consideration is a crucial element in the formation of a valid contract. It refers to…

Q: Which of the following would not be considered a general long term liability? Select one: a. Long…

A: Short term obligations are the obligations that have to be paid within a  year. whereas, long term…

Q: Which of the following amounts incurred in connection with a trademark should be capitalized?…

A: Solution: Registration fees incurred in respect of registration of trademark is capitalized because…

Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…

A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…

Q: V5. As FASB codification 420-10-25-12 stays “A liability for costs to terminate a contract before…

A: The accounting standards codification of FASB is the source of GAAP principles in the USA. These…

Q: Which of the following is most likely to result in the recognition of a liability? a. Customers…

A: Liability refers to an obligation of one party to pay money or any other consideration to the other…

Q: Knowledge Check 01 Which of the following describes the criteria that must be met for a contingent…

A:

Q: 'A provision and a contingent liability are the same.' Briefly discuss *********correct answer…

A: Two concepts that are essential in understanding the recognition and measurement of liabilities are…

Q: If any contractual party breaches the obligation then what can be the course of specific action from…

A: Breach of contract: A breach of contract refers to a contract where two or more person comes into a…

Q: Which of the following is NOT a contingent liability? a. Pending law suit for property damage b.…

A: Introduction: Contingent liability: A liability may or may not occur on future uncertain event. As…

Q: Similar to a like-kind exchange, the receipt of “boot” under Sec. 351 can cause loss to be…

A: A like-kind exchange refers to a transaction in which one asset is disposed of and another asset is…

Q: 1. Which of the following is not an essential characteristic of a liability? * a. It is a present…

A: Liabilities may he defined as existing obligations which a business enterprise intends to meet in…

Q: Which of the following is incorrect? A.To qualify as a liability, an obligation must be payable in…

A: As per Generally Accepted Accounting Principles, liabilities refer to a present obligation that…

Q: TRUE OR FALSE 1. A liability can result from past, present or future events

A: Liabilities are the something that company owes to another party including creditors and investors…

Q: Which of the following is a characteristic of a current​ liability?   A. It is an avoidable…

A: Liabilities are classified into two types. 1. Current liabilities ; which are expected to be paid…

Q: Which of the following is NOT a step in impairment testing? Select one: a. Calculate the asset’s…

A: An asset is said to be impaired if the carrying value of such asset is higher than the higher of…

Q: For a liability to be recognised within the financial statements, it needs to be reasonably apparent…

A: As per IFRS  a liability is that the future payment of which results…

Q: True (t) or False (f) _____ Contingent liabilities should be recorded in the accounts if there is a…

A: The contingent liability represents the obligation that arise in the organization due to its past…

Q: 1. What is the warranty of merchantability?

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

Q: ccess the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:1.…

A:

Q: One of examples of contingent liability is an: * a. Obligations related to product warranties b.…

A: As per IFRS 37 provisions, contingent liabilities and Contingent assets. A provision is an present…

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.