Quiz 13: Current Liabilities and Contingencies | Quiz+

Under IFRS, a liability that is refinanced after the balance sheet date but before the financial statements are issued would typically be classified as a current liability. Question 15 True/False

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What is a contingent liability?

An existing situation where uncertainty exists as to possible gain or loss that will not be resolved in the foreseeable future. d. An existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur. When is a contingent liability recorded? a. ...

What is the difference between current liability and long-term liability?

b. Current liability if the creditor intends to call the debt within the year, otherwise a long- term liability. c. Current liability if it is probable that creditor will call the debt within the year, otherwise a long-term liability. d. Current liability. ...

What is a liability in accounting?

Study with Quizlet and memorize flashcards containing terms like Liabilities are a. any accounts having credit balances after closing entries are made. b. deferred credits that are recognized and measured in conformity with generally accepted accounting principles. c. obligations to transfer ownership shares to other entities in the future. d. ...

Is a debt maturing with current assets a current liability?

A debt maturing currently to be paid with current assets is a current liability. 32. Accounts Payable, Wages Payable, etc., would be examples of current liabilities. 44. The company must both intend to refinance the obligation on a basis and demonstrate the ability to consummate the refinancing to exclude a obligation from current liabilities. ...

What should a company consider when calculating a loss contingency?

11. Companies should recognize the expense and related liability for compensated absences in the year earned employees. 12. Companies should accrue an estimated loss from a loss contingency if information available prior to the issuance of financial statements indicates that it is probable that a liability has been incurred. 13. ...

What are examples of current liabilities?

32. Accounts Payable, Wages Payable, etc., would be examples of current liabilities. 44. The company must both intend to refinance the obligation on a basis and demonstrate the ability to consummate the refinancing to exclude a obligation from current liabilities. MULTIPLE 90. ...