Question 11 pts

Which factor is not considered during an assessment of whether to record a liability for pending litigation?

Group of answer choices

Capability to generate a reasonable estimate of the amount of the loss

The period in which the underlying cause of action took place

Probability of an unfavorable outcome

The type of litigation involved

Flag question: Question 2

Question 21 pts

Among Planet Express, Inc.s short-term obligations as of the balance sheet date (December 31) are notes payable which total $250,000 with the Bank of Hong Kong Luna. These 90-day notes are renewable for one more 90-day period. How should these notes be classified on Planet Expresss balance sheet?

Group of answer choices

Deferred charges

Intermediate debt

Long-term liabilities

Current liabilities

Flag question: Question 3

Question 31 pts

All of the following payroll taxes are levied against the employer except ________.

Group of answer choices

state unemployment taxes

FICA taxes

withheld federal income taxes

federal unemployment taxes

Flag question: Question 4

Question 41 pts

Which of the following may be a current liability?

Group of answer choices

Bonds that mature in three years

A cash dividend payable to preferred shareholders

Short-term obligations expected to be refinanced

None of the above

Flag question: Question 5

Question 51 pts

Stock dividends distributable should be classified on the ________ as a(n) ________.

Group of answer choices

income statement; expense

balance sheet; stockholders' equity

balance sheet; asset

balance sheet; liability

Flag question: Question 6

Question 61 pts

When must employers accrue a liability for sick pay?

Group of answer choices

Sick pay benefits are vested.

Sick pay benefits are equal to 100% of the pay.

Sick pay benefits accumulate over time.

It is possible to make a reasonable estimate of sick pay benefits.

Flag question: Question 7

Question 71 pts

Which of the following is the result of the requirement to accrue a liability for the cost of compensated absences?

Group of answer choices

The vesting or accumulation of employee rights

Payment is likely.

It is possible to make a reasonable estimate of the amount.

All of these

Flag question: Question 8

Question 81 pts

How do zero-interest-bearing notes payable relate to discounts?

Group of answer choices

The discount is the borrowers credit quality.

The discount is an allowance for uncollectible amounts.

The discount is the cost of borrowing.

The discount is the lender's costs to underwrite the note.

Flag question: Question 9

Question 91 pts

Morrison has a customer complaint that alleges that Morrisons new lawnmower had a defect that resulted in hospitalization for the customer. Morrison believes that the customer has about a 60% chance of winning the case. If the customer wins, there is a range of losses between $3,000,000 and $5,000,000; any number has an equal chance of occurring. From the IFRS perspective, what amount should Morrison accrue as a liability?

Group of answer choices

$0

$3,000,000

$4,000,000

$5,000,000

Flag question: Question 10

Question 101 pts

Since refinancing causes a short-term obligation to be excluded from current liabilities, what items should not be included in the footnote to the financial statements?

Group of answer choices

Names of financial institutions that refused to refinance the debt

Terms of the new obligation incurred

Terms of equity security not yet issued

A description of the financing arrangement