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Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent liability II. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. III. A provision is a liability of certain timing and amount. IV. Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid. * Q

Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent liability II. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. III. A provision is a liability of certain timing and amount. IV. Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid. * Q

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent liability II. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. II. A provision is a liability of certain timing and amount. IV. Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid. * O Ill only O I and IV only O Il and IV only O I, Il and IV
Transcribed Image Text:Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent liability II. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. II. A provision is a liability of certain timing and amount. IV. Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid. * O Ill only O I and IV only O Il and IV only O I, Il and IV
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