Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? Group of answer choices Amount of loss is reasonably estimable and event occurs infrequently. Amount of loss is reasonably estimable and occurrence of event is probable. Event is unusual in nature and occurrence of event is probable. Event is unusual in nature and event occurs infrequently.

Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? Group of answer choices Amount of loss is reasonably estimable and event occurs infrequently. Amount of loss is reasonably estimable and occurrence of event is probable. Event is unusual in nature and occurrence of event is probable. Event is unusual in nature and event occurs infrequently.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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: Question 10 Which of the following should be reported when an entity changed the expected service…

A: Retrospective accounting changes involve adjusting the financial statements of previous periods as…

Q: need to explain In the preparation of a schedule of safe payments, cash withheld for future…

A: Under the schedule of safe payments the possible loss consists of the total of value of non cash…

Q: What are the disclosure requirements for a correction of an accounting error?

A: An accounting error refers to a mistake or inaccuracy in financial records, statements, or reporting…

Q: Prospective application of recognizing the effect of a change in an accounting estimate means A.…

A: Prospective means expected or expecting thing in the future. Financial statements are the reports of…

Q: Which of the following is true regarding whether IFRS specifically addresses the accounting and…

A: IFRS:

Q: Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent…

A: solution : Which of the following statement/s are incorrect? Answer : Only statement (iii) is…

Q: How can a misstatement in one financial statement, whether intentional or not, affect a presentation…

A: Mis-statements in financial statements are errors or omissions of financial data or where the…

Q: Under IFRS, changes in accounting policies are a. permitted if the change will result in a more…

Q: When should an impairment loss be recognised? a) Immediately b) When requested by the entity's…

A: Impairment loss is the permanent decrease in the fair value of asset over its carrying value.

Q: A change in accounting estimate is An adjustment of the carrying amount of an asset or liability,…

A: Answer: Change in accounting estimate is the change in the value of the carrying amount of the…

Q: Which of the following statements about a change in accounting estimate is not true?

A: Accounting estimates are judgments and assumptions made by management in measuring various assets ,…

Q: Which of the following best describes the application ofgenerally accepted accounting principles to…

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: Multiple choice 1. A change in measurement basis is most likely a. change in accounting policy. c.…

A: Accounting policies are the type of accounting procedures for the preparation of financial…

Q: A misstatement in the financial statements can be considered material if knowledge of…

A: We have the following question: A misstatement in the financial statements can be considered…

Q: Which of the following statement is correct regarding accounting changes that result in financial…

A: Introduction:- The following statement is correct regarding accounting changes that result in…

Q: In IFRS, the conceptual framework indicates appropriate accounting when a more specific accounting…

A: The International Financial Reporting Standards (IFRS) constitute a globally consistent,…

Q: Explain the concept of hindsight in relation to changes in accounting estimates and errors. How…

A: The concept of hindsight in accounting relates to the situation where subsequent information becomes…

Question

Which of the following sets of conditions would give rise to the accrual of a contingency under
current generally accepted accounting principles?
Group of answer choices
Amount of loss is reasonably estimable and event occurs infrequently.
Amount of loss is reasonably estimable and occurrence of event is probable.
Event is unusual in nature and occurrence of event is probable.
Event is unusual in nature and event occurs infrequently.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Accrual of a loss contingency Concept

VIEW

Step 2: Identifying correct option and explaining incorrect options

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The use of the cumulative effect method to account for a change in accounting principle violates the accounting concept of a. Materiality b. Objectivity c. Consistency d. Conservatism
Why is retrospective treatment of changes in accounting estimatedprohibited? A. Changes in estimate are normally corrections and adjustments which are the natural result of the accounting process B. The retrospective treatment for any type of presentation is not allowed C. Retrospective treatment of changes in accounting estimate is required by IFRS D. The IFRS is silent on the issue
Why does accounting rely on inexact or approximate measures?
What is an Asset impairment in accounting and what are the factors for considering an impairment?
subject; account
When an event impacts a financial statement element, it should be recognized in the accounting records even if reliability of the amount is questionable. True False
true or false. No material misstatements are allowed if financial statements are to called fairly presented?
Which of the following is not one of the approaches for reporting accounting changes? The change approach. O The retrospective approach. The prospective approach. O All of these answer choices are approaches for reporting accounting changes.
Which of the following statements is true regarding correcting errors in previously issued financial statements prepared in accordance with International Financial Reporting Standards? a. The error can be reported in the current period if it’s not considered practicable to report it retrospectively. b. The error can be reported in the current period if it’s not considered practicable to report it prospectively. c. The error can be reported prospectively if it’s not considered practicable to report it retrospectively. d. Retrospective application is required with no exception.
Where a change in accounting estimates occurs, which of the following should be disclosed? A. The nature of the change and the impact on previous income statements The fact that the amount of the effect on future periods will not be disclosed because B. estimating that amount is impracticable and the reason for the change and comparative data to show the impact with and without the change The fact that the amount of the effect on future C. periods will not be disclosed because estimating that amount is impracticable D. The reason for the change and comparative data to show the effect with and without the change
Assuming proper accounting disclosure is used, a large, extraordinary loss has wha Multiple Choice O O O More information is needed to determine the effect. It lowers it. It raises it. It has no effect.