The opinion paragraph of a CPA’s report states: “In our opinion, except for theeffects of not capitalizing certain lease obligations, as discussed in the precedingparagraph, the financial statements present fairly, in all material respects. . ..” Thisparagraph expresses a(n)(1) unqualified opinion.(2) unqualified opinion with explanatory paragraph.(3) qualified opinion.(4) adverse opinion.

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: O None of these would be considered a breach of the qualitative characteristic of faithful…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: State with reason whether the following statements are true or false Contingent liability is an…

A: Contingent liability can be defined as the liability that may occur on the basis of the outcome of…

Q: State any FOUR (4) procedures that would normally be performed by the practitioner before any report…

A: In order to issue any report on review the practitioner must obtain information on financial…

Q: Determine whether the statement is legally correct (true) or not (false).  Even where the contract…

A: The business can be run by the individual in the form of sole proprietorship, or it can be run as a…

Q: Question text Under IFRS, which of the following statements is true regarding accounting for defined…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: typically recognized as revenue: a. when billed if they are expected to be received within the…

A: As per concept of revenue recognition revenue is recognised only based on the type of activities…

Q: Defihe and explain -An agreement that violate statute - An agreement that violate public policy…

A:

Q: What are the measurement issues in the IFRS16 Leases standards.? a)Which basis of measurement is…

A: In the year 2016, The International Accounting Standards Board (IASB) published IFRS 16 - LEASES.…

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: If the previously stated situation is deemed to be a highly material event the type of report that…

A: The adverse opinion indicates that the firm's financial situation is not good and grossly…

Q: Which of the following statements is most likely to be included in an attorney letter?a. “Certain…

A:

Q: When should a contingent liability be recognized and reported on the financial statements?  A.…

A: Contingent liability: A liability can occur on future uncertain events.

Q: 1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a…

A: Only the S1 is correct  PFRS 17 said that insurer can change its accounting policy if it provides…

Q: A purchaser paid $342.50 for a TV that cost the seller $250. If the seller's markup was 37% of the…

A: Markup means the profit percentage on cost price of selling price. Formula for markup on selling…

Q: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…

A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…

Q: When recognizing a contingent liability, if the future event is probable (likely) and the amount can…

A: It is a potential obligation that may arise from past events but its existence will be confirmed…

Q: In negotiating and effecting a troubled debt restructuring, the creditor usually incurs various…

A: 1. The relevant authoritative literature on the accounting treatment of legal fees incurred by a…

Q: Contingent liabilities that are classified as reasonably possible or probable must each be footnoted…

A: Contingent liabilities are potential future obligations dependent on specific events, such as…

Q: According to​ FASB, when should a company journalize a contingent​ liability?     A. Do not…

A: According to FASB (Financial Accounting Standards Board), a company should journalize a contingent…

Q: The new revenue recognition standard does not apply to Leases. Insurance contracts. Financial…

A: IFRS 15 - Revenue recognition has the 5 steps principle to recognize revenue: Identification of…

Q: S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as…

A: The current set of questions is related to accounting practices for an insurance company in terms of…

Q: When information comes to the auditor's attention that raises substantial doubt about the entity's…

A: Qualified opinion is given where auditor believe that there are some mistakes and rest the financial…

Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…

A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…

Q: The drawee of a check is not liable on the instrument until the check is _______.   a.) Accepted.…

A: Check is the document that authorizes the bank to make the payment from one person’s account to…

Q: 1. Assume that your friend Jackie Chan, who is a Literature major, asks you to define and discuss…

A: Imagine borrowing a book from the library. You have a responsibility to return it, right? That…

Q: Materiality arises when a misstatement in the financial statements could affect a decision of a…

A: In auditing, materiality is a concept used to determine the significance of financial statement…

Q: If either party fails to perform their contractual obligations according to the contract terms, it…

A: Auditing refers to the examination of the financial records of a business organization to verify the…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: i. Approach to solving the question:To solve this question, I followed a systematic approach:1.…

Q: The accrual of a contingent liability and the related loss should be recorded when the a. Loss…

A: Accrued liability are refer as when probability of occurrence of the loss contingency is probable…

Q: Application of the full disclosure principle _____________.   a.requires that the financial…

A: Accounting principles are those rules and guidelines which are used by the accountants in completing…

Q: Which of the following is not a condition in identifying the contract with the customer as per IFRS…

A: As IFRS 15 - Revenue from Contracts with Customers, The standard provides a single, principles based…

Q: An arrangement for creditors to accept an amount less than the amount owed to them is referred to as…

A: The debtor typically proposes a payment plan that offers to pay a certain percentage of the total…

Q: The following does not constitute fair presentation and compliance with IFRS: a)  an entity rectify…

A: IFRS refers to International Financial Reporting Standards. It is a set of rules or guidelines which…

Q: Discuss the circumstances that require a contingent liability to be disclosed in the notes to the…

A: A contingent liability is a liability that may (or may not) occur in future.   The occurrence of…