Which of the following is not an example of an item that would be a contingent asset? a A possible receipt of damages that is associated with a legal claim made against another entity. b A claim by a company against the State government about some land expropriated in 1997 for which the directors are of the opinion based on previous negotiations with the government that there is a strong indication of the claim being probable in the next period. c A company has started negotiations with a potential new customer and the directors are of the opinion that it is probable that there will be a sale in future periods from these negotiations. d None of the other options; all are contingent assets.
Which of the following is not an example of an item that would be a contingent asset? a A possible receipt of damages that is associated with a legal claim made against another entity. b A claim by a company against the State government about some land expropriated in 1997 for which the directors are of the opinion based on previous negotiations with the government that there is a strong indication of the claim being probable in the next period. c A company has started negotiations with a potential new customer and the directors are of the opinion that it is probable that there will be a sale in future periods from these negotiations. d None of the other options; all are contingent assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Which of the following is not an example of an item that would be a contingent asset?
| a |
A possible receipt of damages that is associated with a legal claim made against another entity.
|
|
| b |
A claim by a company against the State government about some land expropriated in 1997 for which the directors are of the opinion based on previous negotiations with the government that there is a strong indication of the claim being probable in the next period.
|
|
| c |
A company has started negotiations with a potential new customer and the directors are of the opinion that it is probable that there will be a sale in future periods from these negotiations.
|
|
| d |
None of the other options; all are contingent assets.
|
1
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