Which of the following statements is not true about provisions? a. Examples of provisions include warranty obligations and pending lawsuits. b. Provisions are classified as current or long-term depending on when the payment is expected to be made. c. Relative to other liabilities, there is less uncertainty about the expected timing or amount for those reported as provisions. d. Provisions are accrued if the payment is probable and the amount can be reasonably estimated.
Which of the following statements is not true about provisions? a. Examples of provisions include warranty obligations and pending lawsuits. b. Provisions are classified as current or long-term depending on when the payment is expected to be made. c. Relative to other liabilities, there is less uncertainty about the expected timing or amount for those reported as provisions. d. Provisions are accrued if the payment is probable and the amount can be reasonably estimated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Which of the following statements is not true about provisions?
a. Examples of provisions include warranty obligations and pending lawsuits.
b. Provisions are classified as current or long-term depending on when the payment is
expected to be made.
c. Relative to other liabilities, there is less uncertainty about the expected timing or amount for
those reported as provisions.
d. Provisions are accrued if the payment is probable and the amount can be reasonably
estimated.
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