A financial guarantee contract is initially recognized (i) The premium received (ii) Fair value (iii) The higher of premium or expected credit loss (iv) The guaranteed amount

Loans and receivable should be measured subsequent to initial recognition at *   a. Amortized cost using the straight line method b. Fair value c. Fair value plus transaction cost d. Amortized cost using the effective interest method

Contingent liabilities are obligations that may or may not materialize.

Which of the following is classified as nonmonetary? a. Warranty liability b. Accrued expense c. Unamortized discount on bonds payable d. Refundable deposit

An obligation that is contingent on the occurrence of a future event should be reported in the statement of financial position as a liability if: a. The amount of the obligation can be reasonably estimated. b. The future event is likely to occur. c. The occurrence of the future event is at least reasonably possible and the amount is known d. The occurrence of the future event is probable and the amount can be reasonably estimated.

For most long-term liabilities, an important consideration is that they are properly authorized. True or False?

A contingent liability: Is always of a specific amount O Is a potential obligation that depends on a future event arising out of a past transaction or event O Is an obligation not requiring future payment O Is an obligation arising from the purchase of goods or services on credit O Is an obligation arising from a future event

What are Contingent Liabilities?  Give an example.  What are the factors that determine the reason for Contingent Liabilities?

Liabilities that are not secured by specific assets are called: Multiple Choice O O O General credit obligations. Accrued liabilities. Indentures. Debt contracts.

A contract requiring a specified future monetary payment at a specified future point in time in exchange for the delivery of a specific asset is called a: *A. nonconvertible option.B. hedge.C. long contract.D. swap.