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31. Which of the following correct definition of a provision? * (1 Point) An obligation to transfer funds to an entity. A liability of uncertain timing or amount A possible obligation arising from past events A liability which cannot be easily measured LLE 32. Which of the following best describes an operating lease? (1 Point) The lessee records interest and depreciation For the duration of the lease the lessor transfers title of the underlying asset to the lessee The lease liability relating to the underlying asset is present in the books of the lessee The rent revenue and depreciation is recorded in the accounting books of the lessor 33. An outflow of resources embodying future economic benefits it is regarded as "probable" when (1 Point) The probability that the event will occur is the as the probability that the event will not occur. The probability that the event will occur is 909 likely The event is more likely than not to locaur meaning the probability that the event will occur is greater than the probability that the event will not occur The probability that the event will not occur is greater than the probability that the event will occur. 34. Which statement is incorrect concerning recognition of a provision? * (Point) A provision shall be used only for expenditures for which the provision was originally recognized. Provision shall be reviewed at the end of each reporting period. If an entity has an onerous contract the present obligation under the contract shall be recognized a measured as a provision. Provision shall be recognized for future operating losses. 35. The Bigger Company operates chemical plants. Its published policies include a commitment to making good any damage caused to the environment by its operations. It has always honored this commitment. Which one of the following scenarios relating to Bigger would give rise to an environmental provision as defined by PASSADO (1 Point) A chemical spill from one of the company's plants has caused harm to the surrounding area and wildlife The government has outlined plans for a new lawrequiring all en onmental damage to be rectified Recent research suggests there is a possibilis that the company's actions may damage surrounding wildlife On past experience it is likely that a chemicals and result in Dipper having to pay fines and penalties will occur in the next year