Which of the following is a charteristic of a current liability

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: Initially, a lease liability is measured a. by the lessee at the present value of the lease…

A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Q: Choose the correct statement below: A. Contingent liability is both probable and measurable. B. An…

A: The answer for the multiple choice question on choosing the correct statement and relevant…

Q: What rate is used when computing the present value of the new liability arising from modification of…

A: Present value represents the worth of money is more than in the future for the same amount.

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: . The Lease Liability account should be presented as * O all current liabilities. O deferred…

A: The lease liability is the financial obligation for lease payments recorded at present value for the…

Q: long-term basis at the end of

A: Short-term obligation are those which mature within a period of one year. Long term obligations are…

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: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…

A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…

Q: Which of the following is not an accrued liability?   Question 36 options:   A)  Warranty…

A: Accrued liabilities are costs that a business has incurred but not yet paid for and recorded in the…

Q: A capital (or "financing") lease usually calls for an annual expense deduction equal to the lease…

A: Leasing is a financial instrument that can be used by the investors instead of buying an asset for…

Q: The basic difference between a direct-financing lease and a sales-type lease is the allocation of…

A: A lease is an agreement that describes terms and conditions. It is an agreement, where one party…

Q: n amount paid by the lessee to the lessor in addition to the periodic rental which is treated by the…

A: Solution: Lease bonus in addition to the lease payment are considered as unearned rent income for…

Q: Assume you are working in public accounting and the client you are assisting has a question on the…

A: A bond discount expense has been incurred and being an employee for a Public Accounting what…

Q: The current portion of long-term debt would appear on the balance sheet as a. long-term debt. b.…

A: Balance sheet is the financial statement which is normally prepared for the purpose of reporting the…

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: 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: 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: anticipated liability, which may or may not arise in future in known as a Current Liability b.…

A: ⇔Debts or obligations that must be paid within a year are referred to as current liabilities,…

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: Which of the following accounts would not appear on the income statement of a lessee in connection…

A: A finance lease indicates the agreement between the lessor and lessee where the former provide the…

Q: An operating lease: Is recorded at its net present value on the balance sheet. Is recorded on the…

A: An operating lease refers to a contract in which an asset is provided for use without transferring…

Q: Which statement is incorrect? a. PFRS mandates the use of projected unit credit method of…

A: IAS 19 (International Accounting Standard 19)- Employee Benefit:- These standards included employee…

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: 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: If an insured fails to pay the premium when due, the insured's heallh policy will remain in force…

A: Health insurance is a type of insurance that helps to pays for medical costs incurred as a result of…

Q: What differentiates a current liability from a long-term liability? Share at least two examples of…

A: Any type of debt that a company owes to a person or another company is referred to as a liability.…

Q: What two types of transactions make up the largest percent of current liability

A: Current Liabilities are those liabilities which are to be paid in short period of time or within a…

Q: opinion: Should lease payments be a current liability included in the acid-test ratio? why

A: Acid-test ratio: The financial ratio which evaluates the ability of a company to pay off the instant…

Q: One of the most effective ways to determine the overall reasonableness of interest bearing debt is…

A: On interest bearing debt, company is required to make payment of interest on debt.

Q: Why did Syntel Microsystems include some long-term debt in the current liability section?

A: Long-term debt:   Long-term debts are obligations that the company needs to pay after at least one…

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 a current liability? Select one: A long-term debt maturing currently,…

A: As per IFRS 1  A Current Liability is Liability which is payable with in normal operating cycle…

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

A: The liabilities which are payable within one year are considered but the liabilities having life…

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.