TRUE OR FALSE? (Based on the book.) The effect of a lender agreeing to give the borrowing entity a grace period within the reporting period will make a liability noncurrent.
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Q: What type of concessions might a creditor grant the debtor in a troubled-debt situation?
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Q: What evidence is necessary to demonstrate the ability to defer settlement of short-term debt?
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A: There is agreement between borrower and lender for payment of loan.
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Q: Of the following items, the only one which should not be classified as a current liability is…
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A: External confirmation External confirmation can be defined as a substantive audit procedure used by…
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A: A debt restructuring that involves a modification of terms and does not require court approval may…
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A: There are two conditions in which short term obligations can be reported as non current liabilities…
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A: The answer has been mentioned below.
Q: In a troubled-debt situation, why might the creditor grant concessions to the debtor?
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Q: In a debt extinguishment in which the debt is continued with modified terms and the carrying amount…
A: A gain should be recognized by the debtor
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A: First of all we need to understand the meaning of Credit risk- Credit risk is the probability of…
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A: The question is multiple choice question Required Choose the Correct Option.
Q: Which of the following is not a liability?
A: Liabilities: Liabilities are referred to as the obligation of the business towards the creditors…
TRUE OR FALSE? (Based on the book.)
The effect of a lender agreeing to give the borrowing entity a grace period within the reporting period will make a liability noncurrent.
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- For each class of provision, AASB 137 Provisions, Contingent Liabilities and... For each class of provision, AASB 137 Provisions, Contingent Liabilities and Contingent Assets requires an entity to disclose the following information: I. Comparative information; II. Unused amounts reversed during the period; III. Additional provisions made during the period; IV. The carrying amount at the beginning and end of the period; V. A brief description of the nature of the obligation and the expected timing. O a. II, III and IV only. O b. I, II, and III only. OC I, III, IV and V only. O d. II, III, IV and V only.Short-term obligations are reported as noncurrent if the entity has a discretion to refinance it as long-term. True FalseIn which of the following instances would a liability that would otherwise be presented as current is presented as noncurrent a. The liability is payable on demand but the lender promises the entity after the reporting period that the lender will not demand payment in the next 12 months b. The entity enters into a refinancing agreement after the reporting period but before the financial statements are authorized for issue c. The entity enters into a refinancing agreemerit and the agreement is completed by the balance sheet date d. The liability is payable on demand but the entity estimates that it is probable that the lender will not demand payment
- 1. An SME shall measure a provision a. at fair value b. at cost c. at the best estimate of the amount required to settle the obligation at the reporting date. d. any of theseAccess the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ) Required: Determine the specific citation for accounting for each of the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay.Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed.2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.3. Accounting for the revenue from separately priced extended warranty contracts.4. The criteria to determine if an employer must accrue a liability for vacation pay
- TRUE OR FALSE?1. Short-term obligation refinanced on a long-term basis at the end of the reporting period is a current liability.2. An entity must make the current and noncurrent presentation of assets and liabilities, except when a presentation based on liquidity provides information that is reliable and more relevant.3. A liability is classified as noncurrent when at the end of the reporting period the entity has the right to defer settlement of the liability for at least twelve months after the reporting period.Provide answer please! If the collection of the note receivable is reasonably assured, what is the net income to be recognized by the entity for the year ended December 31, 2020 in relation to the initial franchise fee?A. 98,850 C. 70,028B. 94,850 D. 92,037Short-term obligations can be reported as noncurrent liabilities if the company (a) intends to refinance ona long-term basis and (b) demonstrates the ability to do so by actual financing or a formal agreement to doso.
- When the required balance of the loss allowance decreases, a. the entity recognizes gain. b. the entity recognizes loss. c. the entity recognizes unearned interest to be amortized over the remaining term of the instrument. d. the entity recognizes a deferred charge to be amortized over the remaining term of the instrument.At contract inception, PFRS 15 requires an entity to determine how the performance obligations identified in the contract will be satisfied. According to PFRS 15, how does an entity satisfy a performance obligation in a long-term construction contract? over time at point in time any time over time or at point in timeWhich of the following statements is not applicable to contract acquisition costs under ASC Topic 606 guidance for revenue recognition? Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract. Costs that would be incurred regardless of whether a contract is obtained are not capitalized. The capitalization requirement is subject to a practical expedient. Costs must be capitalized even if the amortization period is one year or less.