( ) : 17 CPA Canada : Select the best answer for each of the following unrelated items. Marks will not be awarded for explanations. (40 marks, 2 marks for each) 1.Which of the following groups includes only financial liabilities? A) Accounts payable, Notes payable, Warranties payable. B) Bank loan, Bonds payable, Finance lease bligation. C) Accounts payable, HST payable,Bonds payable. D) Bank overdraft, USD bank loan, Obligation under customer loyalty plan. : 2. Which statement is correct? A) Contingencies arise from future events. B) The amount to be paid for contingencies is known or C) Current liabilities arise from future events. reasonably estimable. D) The amount to be paid for current liabilities is known or reasonably estimable. 3. Gail was subsequently sued Glamour for $500,000 in damages. Glamour's legal counsel advises that there is an 80% probability that the company will be found liable. If Glamour loses the case, the plaintiff (Gail) will be awarded damages between $50,000 and $70,000, with all outcomes injured when she slipped on a wet floor while shopping at Glamour Inc. Gail equally probable. Glamour is considered to be a publicly accountable enterprise. What is the appropriate accounting treatment with regard to this event on Glamour's financial statements? A) Recognize a provision for $48,000 B) Recognize a provision for $50,000 C) Recognize a provision for $60,000 D) Recognize provision for $500,000 a 4. Which of the following is true? A) The declaration of a stock dividend gives rise to a liability C) Undeclared dividends in arrears on cumulative preferred shares are recorded as a liability. D) No note disclosure is required for the declaration of a stock split. revocable by the board of directors at any time before they are issued. B) Stock dividends are