definition and recognition criteria of liabilities
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A: a. mortgage payable is the right answer. Other option are incorrect as they are short term…
Q: Which of the following should not be included in the current liability section of the balance sheet?…
A: The balance sheet is the statement of financial position of the business.
Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…
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Q: Bond premium should be reported in the statement of financial position A. along with other premium…
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Q: Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the…
A: the following loan commitments are within the scope of IPFRS 9:: Loan commitments that can be…
Q: Liabilities are obligations of a company to creditor. Select one: True False
A: Liabilities are obligations of a company to creditor. Answer: False Explanation: A liability is a…
Q: Assume you are working in public accounting and the client you are assisting has a question on the…
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Q: t relevant assertion should be used to record loans receivable net of an allowance for loan losses…
A: A loan receivable is that the amount of money owed from a human to a creditor (typically a bank or…
Q: The following items are found in the financial statements. Indicate how each of these items should…
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Q: 1. Which of the following is an essential characteristic for an obligation to qualify as a…
A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Short-term obligations can be reported as noncurrent liabilities if the company (a) intends to…
A: There are two conditions in which short term obligations can be reported as non current liabilities…
Q: A debt amortization schedule prepared for each debt and equity is considered a good control. O True…
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Q: In accounting for short-term debt expected to be refinanced to long-term debt:(a) GAAP uses the…
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A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…
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A: Non Current Liability are long term liabilities where their payment is due 12 months after the…
Q: Which of the following statements is correct? Select one:
A: Short term obligation means any financial obligation payable within a period of 12 months.
Q: What is the effective interest rate of a bond or other debt instrument measured at amortized cost?…
A: The effective rate is increased times the bond's value at the beginning of the accounting amount to…
Q: The application of the present value factors in the computation of carrying amounts of bonds payable…
A: Introduction:- The following principal application for the present value factors in the computation…
Q: How shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial…
A: Financial liabilities can be measured at amortized cost by using effective interest method and it…
Q: Bond discount should be presented in the financial statements of the issue as a(n) Contra liability…
A: >Bond discount is recorded in the books of account as the difference between Face value of Bond…
Q: What makes product warranties considered as contingent liabilities? Also, what Generally Accepted…
A: Contingent Liability is a liabilty that may arise in outcome of future uncertain amount.
Q: Access the FASB Accounting Standards Codification at the FASB website ( www.fasb.org ). Determine…
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Q: Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? a)…
A: (a) Changes in fair value is the correct answer.
Q: In accounting for short-term debt expected to be refinanced to long-term debt: a. GAAP uses the…
A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and…
Q: Securitization is the financial practice of pooling various types of contractual debt, such as…
A: Securitization is a process in which a financial institution or any company merges its liquid assets…
Q: A long-term liability should be reported as a current liability in a classified balance sheet if the…
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Q: Which of the following items would most likely be classifi ed as a fi nancing activity? A . Issuance…
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Q: Through financial reporting perspective, what are the liability three essential characteristics…
A: Liabilities: Liabilities are referred to as the obligation of the business towards the creditors…
Q: amortized debt premium should be reported on the balance sheet of the insurer as a Group of answer…
A: The bonds are issued at premium or discount to face value of bond. The issuer has to pay the premium…
Q: describe and compare alternative ways to estimate the probability of company defaulting on its debt…
A: The predicted rise in the market value of its assets, the face value and maturity of the debt, and…
Q: What are current and noncurrent accounts among the following: - Deposit Liabilities - Bills…
A: Current liabilities are those Liabilities which are to be repaid within one year.. Any Liabilities…
Q: RUE OR FALSE? The effect of a lender agreeing to give the borrowing entity a grace period after the…
A: Current liabilities: Current liabilities are the obligations that are to be met within a year or 12…
Q: When the initial present value of a bond payable is higher than its face amount, an entity would…
A: The answer is stated below:
Q: Due to banks Deposits from customers Other liabilities Subordinated debt Taxation classify it into…
A: current liabilities - current liabilities should be repaid by the company within one year. examples…
Q: 1.The following is a current liability: a. A long-term debt with current maturity, which will be…
A:
Q: What are the three elements of the definition for liabilities? List from the following items that…
A: Liabilities are the obligations of the individuals or the company which have to be paid back after a…
Q: ll of the following are differences between IFRS and GAAP in accounting for liabilities except: a.…
A: Definition: Bonds: A bond is a debt instrument, which is repaid along with a specific rate of…
Q: Which of the following should be classified as noncurrent liability? Unearned revenue Accrued…
A: >Non current liabilities are the liabilities that are to be repaid in long term, say, after 1…
Q: instrument conditional on the holder (the counterparty) exercising its contractual obligation to…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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Apply the definition and recognition criteria of liabilities, discuss why, or why not, each of the following items is recognised as a liability in the financial statement.
- GST outlays
- GST collection
- Provision for warranty
- Unearned revenue
- An agreement to act as guarantor for another firm’s borrowings.
- Dividend payable
- Allowance for doubtful debts
Accrued interest
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- Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet Recognized initially as a current liability on the balance sheet Amortized over the term of the related debt liability Expensed on the income statement when the transaction occurs Which one is the correct answer please?Which item below is not a current liability? Select one: O O a. Unearned revenue b. Trade accounts payable c. cash dividends d. The currently maturing portion of long-term debtFair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securities
- in relation to receivables, an entity is required by PFRSs toa. All of theseb. disclose any receivables pledged as collateralc. classify receivables as current and non-current in the statement of financial positiond. disclose all significant concentration of credit risk arising from receivablesDiscuss the impact of the balance sheet, income sheet, and statement of CF when securitization is recorded as a sales vs secured borrowing.A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt: A) Is callable by the creditor. B) Is secured by adequate collateral. C) Will be refinanced with stock. D) Will be refinanced with debt.
- If a company have a patent and it will not generate probable future economic benefits, in this case the company will: Select one: a. Derecognition. O b. None of the options. c. Not recorded. O d. Record it as an assetInvestment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A. Interest calculated using the effective interest method. B. All of these. C. Changes in fair value D. Impairment gains and lossesIn the context of handling debt - like items in M&A, what is the most buyer-friendly approach for items representing a hard claim that must be paid post-close? a. Purchase price adjustments b. Escrow accounts c. Insurance policies d. Working capital adjustments e. Debt refinancing
- Which of the following is stated correctly? a. Current liabilities follow non-current liabilities on the statement of financial position under GAAP but non-current liabilities follow current liabilities under IFRS. b. IFRS does not treat debt modifications as extinguishments of debt. c. Bond issuance costs are recorded as a reduction of the carrying value of the debt under GAAP but are recorded as an asset and amortized to expense over the term of the debt under IFRS. d. Under GAAP, bonds payable is recorded at the face amount and any premium or discount is recorded in a separate account. Under IFRS, bonds payable is recorded at the carrying value so no separate premium or discount accounts are used.Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the entity designates as financial liabilities at fair value through profit or loss Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument Commitments to provide a loan at a below-market interest rateThese types of services may be reported as off-balance sheet items except: a. Intangible assets e.g., mortgage servicing rights. b. Standby letter of credit agreement. c. Securitization of collateral. d. Derivatives, hedge funds agreement, futures.