Current Liabilities PROBLEM 1: TRUE OR FALSE 6. Financial liabilities may be subsequently reclassified between the amortized cost and fair value measurement categories. 7. Trade payables and other liabilities that are part of an entity's working capital may be presented as current liabilities even if they are expected to be settled beyond one year.
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Current Liabilities
PROBLEM 1: TRUE OR FALSE
6. Financial liabilities may be subsequently reclassified between
the amortized cost and fair value measurement categories.
7. Trade payables and other liabilities that are part of an entity's
they are expected to be settled beyond one year.
Step by step
Solved in 2 steps
- 4. Financial liabilities other than FVPL liabilities are initiallymeasured at fair value plus transaction costs.5. Amortized cost financial liabilities are subsequently measuredat the present value of the cash outflows from the instrument.6. Financial liabilities may be subsequently reclassified betweenthe amortized cost and fair value measurement categories.7. Trade payables and other liabilities that are part of an entity'sworking capital may be presented as current liabilities even ifthey are expected to be settled beyond one year.8. According to PAS 1, a currently maturing debt that the entity'smanagement intends to refinance is presented as noncurrent.9. According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to thepattern of rights exercised by customers.10. Unearned revenue is revenue that is earned but not yet collected Please answer this all. Thank youCurrent LiabilitiesPROBLEM 1: TRUE OR FALSE4. Financial liabilities other than FVPL liabilities are initiallymeasured at fair value plus transaction costs.5. Amortized cost financial liabilities are subsequently measuredat the present value of the cash outflows from the instrument.6. Financial liabilities may be subsequently reclassified betweenthe amortized cost and fair value measurement categories.7. Trade payables and other liabilities that are part of an entity'sworking capital may be presented as current liabilities even ifthey are expected to be settled beyond one year.8. According to PAS 1, a currently maturing debt that the entity'smanagement intends to refinance is presented as noncurrent.9. According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to thepattern of rights exercised by customers.10. Unearned revenue is revenue that is earned but not yet…Current liabilities are obligations where liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within: A. one year. B. one year or one operating cycle, whichever is longer. C. one year or one operating cycle, whichever is shorter. D. an operating cylce.
- Current LiabilitiesPROBLEM 1: TRUE OR FALSE1. A liability exists only if the party to whom the obligation isowed is specifically identified.2. Legal obligations arise only from law.3. A long-term debt that is maturing within 12 months from theend of the reporting period is a current liability.4. Financial liabilities other than FVPL liabilities are initiallymeasured at fair value plus transaction costs.5. Amortized cost financial liabilities are subsequently measuredat the present value of the cash outflows from the instrument.6. Financial liabilities may be subsequently reclassified betweenthe amortized cost and fair value measurement categories.7. Trade payables and other liabilities that are part of an entity'sworking capital may be presented as current liabilities even ifthey are expected to be settled beyond one year.8. According to PAS 1, a currently maturing debt that the entity'smanagement intends to refinance is presented as noncurrent.9. According to PFRS 15, if an entity…PART A: CURRENT LIABILITIES Liabilities 1) Probable future sacrifices of economic benefits 2) Arising from present obligations to other entities 3) As a result of past transactions or events Current liabilities are short-term obligations that will be paid within the current operating cycle or one year, whichever is longer (normally one year). Current liabilities are recorded at face value because the time to maturity is short. Non-current liabilities include all other liabilities that are not current liabilities. Non-current liabilities are recorded at their cash equivalent amount (present value). Cash equivalent- (the cash amount that the creditor would accept to settle the liability today) -Does not include interest until interest has accrued Order of Liabilities on Balance Sheet -Current Liabilities go first, then -Long term (non-current) Liabilities CURRENT LIABILITIES Notes Payable (could be current or non-current) -Evidenced by a contract -Includes interest Interest Calculation…3. Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within. a. one year or operating cycle, whichever is longerb. one yearc. one year or operating cycle, whichever is shorterd. an operating cycle
- ____ 18. The acquisition of an asset on creditA) leaves the total assets unchangedB) decreases assets and increases liabilitiesC) increases assets and liabilitiesD) increases assets and owner’s equity____ 19. The account records long-term debt of thebusiness entity for which it has pledged certainassets as securityA) notes payableB) accounts payableC) mortgage payableD) bonds payable____ 20. The accounting equationA) is used to determine the amount of liabilities owedB) is used to determine the amount of income earnedduring the periodC) shows the claims on the owner’s equity by thecreditorsD) shows the claims on the entity’s assets by both thecreditors and the owner____ 21. When the proprietor withdraws cash or otherassets, the withdrawal account isA) debitedB) creditedC) debited and creditedD) not affected____ 22. A credit entry decreases the balance ofA) owner’s equityB) assetsC) incomeD) liabilities____ 23. When an entity pays employees for theirservices, the effect is an increase…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 debtTrue or False 1. if a credit risk has not increased significantly since initial recognition, an entity may recognize a loss allowance equal to 12-month expected credit loss2. the effect of direct origination cost is a decrease in the effective interest rate of a loan receivable3. The impairment model under IFRS 9 are applicable to all debt instrument including those that are measured at fair value through profit or loss4. the impairment model under IFRS 9 are applicable to all debt instruments including those that are measured at fair value through profit or loss5. The recoverable amount of a credit-impaired financial asset (but not purchased or originated credit impaired or variable rate loan) is computed as the present value of the remaining cash flows from the instrument discounted at the current rate at the reporting date
- 1.Which of the following is not an acceptable presentation of current liabilities? Listing current liabilities according to amount. Offsetting current liabilities against current assets. Listing current liabilities in the order of maturity. Showing current liabilities in the order of liquidation. 2. A deferred revenue not collectible within 1 year is a Non-current liability Current Liability Neither a current liability or a non-current liability Can be a current liability or a non-current liability 3. For a debt restructuring involving substantial modification of terms, it is appropriate for a debtor to recognize a gain when the carrying amount of the debt: Exceeds the total future cash payments. Exceeds the present value of the future cash payments. Is less than present value of future cash payments. Is less than the total future cash payments. 4. The major difference between convertible bonds and bonds issued with share warrants is that upon exercise of the warrants The…When investments measured at amortized cost are reclassified to FVOCI, the gain or loss recognized in profit or loss is equal to * a. zero b. the amount realized to date c. the amount from beginning of period to reclassification date d.the amount from acquisition date to reclassification date e.none of the above38. The current asset section of a balance sheet most likely will include: a. goodwill arising in a business combination accounted for as acquisition b. all deferred income taxes resulting from interperiod income tax allocation c. rent receivable for a security deposit on a lease d. a receivable from a customer not collectible for over one year