Question
1. A provision is defined as a: Multiple Choice A liability of uncertain timing or amount. An estimate of receivables that will are likely not
1. A provision is defined as a:
Multiple Choice
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A liability of uncertain timing or amount.
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An estimate of receivables that will are likely not collectible.
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A financial liability that cannot be measured accurately.
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A liability that is contingent on a future event that is unlikely to occur.
2.
Liabilities are:
Multiple Choice
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Any accounts having credit balances on the balance sheet.
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Obligations to transfer ownership shares to other entities in the future.
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Obligations arising from past transactions and payable in assets or services in the future.
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A contractual obligation such as a purchase order issued for a specific item of inventory or equipment to be delivered in the future.
3. When must a loan be reported as 'current'?
Multiple Choice
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If due 18 months after year-end.
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A long term loan that is in covenant breach and an agreement is reached after year-end.
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A long term loan that is in covenant breach and an agreement is reached before year-end.
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A long-term debt with no stated maturity date.
4.
Which one of the following is a contingent loss that is required to be disclosed only in a note to the financial statements?
Multiple Choice
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A loss that is not certain and the amount can be reasonably determined.
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A loss that probably will never materialize and the amount would not have a significant impact on the company.
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A probable loss of a known amount.
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A probable loss of a reasonably estimated amount.
5.
Which does not represent a financial liability
Multiple Choice
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Cash dividends payable are dividends declared are reported as a current liability if it is payable within the coming year.
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Dividends in arrears for preferred shares.
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Bonus that depends on earnings of the current year.
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Payroll taxes and withholdings.
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