which of the following instances would a liability that would otherwise be presented as current is presented as noncurrent a. The liability is payable on demand but the lender promises the entity after the reporting period that the lender will not demand payment in the next 12 months b. The entity

Q: related party transactions

A: Option a is wrong because the outstanding balance with the related parties and their terms and…

Q: The expected profit from a sales type warranty all be recognized in the period the warranty is sold.…

A: Some basic concepts: Warranty means the guarantee which a seller of goods provide to the buyer…

Q: Which of the following statements are true? а. Revenue should be generally recognized when the…

A: According to the accrual basis of accounting, revenue is recognized when the performance is made.

Q: portion of long-term debt should elect one: a. be reclassified as a current liability. b. be…

A: The liabilities can be classified as current or long term liabilities.

Q: Match (by letter) the correct reporting method for each of the items listed below. Reporting Method…

A: Current liability : Current liabilities are those liability which are due within a year. Long term…

Q: b.bond payable c.two-year note payable

A: Current liabilities are a company's short-term financial commitments due within a year or during a…

Q: The opinion paragraph of a CPA’s report states: “In our opinion, except for theeffects of not…

A: A qualified opinion states that all the financial information of the organization are showing true…

Q: When the amount of a contingent liability cannot be reasonably estimated but its likelihood is…

A: There are three types of contingent liabilities and their treatment   SR. NO. TYPE TREATMENT…

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: S1: The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis…

A: Insurance contract is defined as the agreement under which the insurer of the contract promise to…

Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…

A: In the given case all of the following statements is applicable to contract acquisition costs under…

Q: The following three cases relate to (1) the possible accrual or (2) the possible disclosure by other…

A: The two basic requirements for the accrual of a loss contingency as per ASC 450-20-25-2 are as…

Q: Under the pre-2019 accounting standards, how are operating leases reported in the lessee's balance…

A: An operating lease is a contract in which the lessor, allows the lesse, to use an asset for a length…

Q: 1. Define and briefly discuss a loss contingency.

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

Q: Which of the following statements is true?   a. If any portion of a non-current liability is to be…

A: current liability -  liabilities that are to be paid within one year are current liabilities.…

Q: Current liabilities are obligations where liquidation is reasonably expected to require the use of…

A: Liabilities refers to an obligation which is yet not paid for. Liabilities are divided on the basis…

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 temporary differences results in a deferred tax asset in the year the…

A:

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 stated correctly? a.    Current liabilities follow non-current liabilities…

A: Definition:   Liability: Liability is an agreement made by a company to pay a certain amount for the…

Q: ration of the liability. If the debt was due July 6, 2019 and the assignment was made August 8, 201

A: As per the article 1629 of the civil code, Philippines, if the assignor has made himself liable for…

Q: Which of the following is a charteristic of a current liability

A: Liability: Liability is the obligation of the company to pay which comes from a past activity done…

Q: A deposit premium can be defined as The initial payment schedule required to institute a premium…

A: An insurance contract is a contract where the insured pays the insurer premiums for coverage…

Q: Which of the following are exceptions for PFRS 9 application? CHOICES Contracts to buy or sell…

A: The  following are exceptions for PFRS 9 application?:: Contracts that were entered into and…

Q: What is the formula used to determine the amount repayable to the lender under the Cash Back Option…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Which of the following is most likely to be classified and reported as current liability? a. Bond…

A: The liabilities that are payable within one year are classified as current liabilities. It includes…

Q: 21. For share appreciation rights, S1. the liability is remeasured at the end of each reporting…

A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…

Q: Which of the following shall an entity disclose for loans payable recognized at the end of the…

A: Disclosures about conditions that existed at the end of the reporting period should be updated in…

Q: Which of the following is not generally correct about recording a sale of a debt security before its…

A: The other options are generally correct - A discount on the debt security is typically amortized to…

Q: Which of the following statements is correct? Select one:

A: Short term obligation means any financial obligation payable within a period of 12 months.

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: Gains or losses from the early extinguishment of debt that is refunded can theoretically be…

A: Early extinguishment of debt: It refers to the situation in which the issuer calls the debt…

Q: Bond discount should be presented in the financial statements of the issue as a(n) Contra liability…

A: >Bond discount is recorded in the books of account as the difference between Face value of Bond…

Q: Access the FASB Accounting Standards Codification at the FASB website ( www.fasb.org ). Determine…

A:

Q: Which is an incorrect scenario on covenants? a. The issuing firms pursued revenue generating…

A: The issuer of a debt signs a covenent that it will use the money for a profitable purpose so that it…

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.