31. In accounting, the concept of "recognition" means

a. the process of formally incorporating in the totals of the balance sheet and income statement an item that meets the "probability" and "measurability" criteria for accountable events criteria.

b. journalizing transaction in the books or original entry and posting it to the ledger

c. assigning an amount or value to an accountable event and reporting it in the financial statements.

d. journalizing and posting an accountable event and including it in the trial balance totals.

32. In accordance with the requirements of PAS 37 Provisions, Contingent Liabilities and Contingent Assets, where measurement uncertainty exists, which one of the following methods is not an appropriate valuation for a provision based on accounting standards?

a. The mid-point of a range of equally likely outcomes of expenditure. b. No provision should be recognized where measurement uncertainty exists. c. The minimum amount expected to represent a best estimate, where the other option is omission. d. The most likely amount expected to represent a best estimate, where there is a single obligation.

33. Contingent liability will or will not be recognized as a provision (liability) depending on

a. The degree of uncertainty b. The outcome of a future event c. Whether they are probable and estimable d. The present obligation suggesting a liability

34. Contingent liability will or will not become actual liabilities depending on

a. The outcome of a future event b. The degree of uncertainty c. The present condition suggesting a liability d. Whether they are probable and estimable

35. Which of the following is the most likely candidate for a contingent liability that can be accrued?

a. Potential liability on a product still in the planning stage (no items have been sold) b. Potential liability for a lawsuit in which the firm is a defendant. c. Property tax payable d. Warranty liability