classified as liabilities and explain why, or why not, they are classified as liabilities: a) Provision for warranty b) Unearned revenue c) GST payable d) Allowance for doubtful debts e) A disputable lawsuit

Q: how to correct a Notification has been received that the outstanding balance on one of the debtors…

A: Introduction:   Rectification entry has to be passed when any error has been made in the books of…

Q: definition and recognition criteria of liabilities

A: Liability is the obligation to be repaid or loss to be met in future.

Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they…

A: A warranty liability is a liability account that reports the estimated amount that a company will…

Q: If a note receivable is discounted without recourse   a. the contingent liability may be disclosed…

A: Note Receivable: It is the  asset  which  represent the value of all promissory notes  , that is  a…

Q: in relation to receivables, an entity is required by PFRSs to a. All of these b. disclose any…

A: Solution: In relation to receivables, an entity is required by PFRSs to: 1. Disclose any receivables…

Q: When an entity breaches under a long-term loan agreement on or before the end of the reporting…

A: If an entity expects debt to be settled in the normal operating cycle, it is classified as Current…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: Which of the following is most likely to be regarded as an estimated liability that is subject to…

A: Solution Concept Estimated liability that is subject to provision           It means that the amount…

Q: Which is a valid statement regarding recognition of liabilities?        a. A non-interest bearing…

A: The non-interest bearing note is the note on which no interest rate is mentioned. But interest has…

Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…

A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…

Q: The Standard IAS 37 sets the criteria for recognition and measurement of Provisions; Contingent…

A: Contingent liabilities are those  possible obligations whose existence shall be confirmed by the…

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: As regards antichresis, which of the following is not correct? * a. The amount of the principal and…

A: The following statements are correct: Statement a as per Article 2134 Statement c as per Article…

Q: Which of the following is stated correctly? a.    Current liabilities follow non-current liabilities…

A: Definition:   Liability: Liability is an agreement made by a company to pay a certain amount for the…

Q: A debt restructuring that involves a modification of terms and does not require court approval may…

A: A debt restructuring that involves a modification of terms and does not require court approval may…

Q: Define Allowance for Bad Debts

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Which of the following statements is false?a. A contingent liability should be disclosed in the…

A: A contingent liability is a liability which occurrence is depending on the outcome of a uncertain…

Q: Which of the following is not a liability?a. Income taxes payableb. Accrued warranties payablec.…

A: Liability are the obligations which are to be paid in current period or in future.

Q: Amounts collected for third parties represent liabilities until remitted. Provide several examples…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: Must obligations be known contractual debts in order to be reported as liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: hich of the following best describes the accounting for assurance-type warranty costs?

A: Since an assurance-type warranty guarantees the functionality of a product, the warranty is not…

Q: Contingent liabilities are not recorded in the financial statements. True False

A: As per IAS 37, Provisions, contingent assets and contingent liabilities  A contingent liability is a…

Q: Which of the following is an arrangement by which one party promises to pay a sum of money to…

A: Insurance is a contract between two parties where one party i,e policy holder pays a premium to…

Q: measuring and recognizing impairment loss on receivables?

A: A is correct because the analysis of past experience gives the estimate of impairment loss on…

Q: What are the audit procedures used to identify contingent liabilities?

A:

Q: Accounting The procedure that best reveals the existence of contingent debts is

A: Contingent liability is a liability that may or may happen on a future date that is based on an…

Q: Which of the following is the correct journal entry to write off a debtor who has been declared as…

A: The journal entry to write off a debtor who has been declared as bankrupt is as follows :

Q: If problem is silent as to the terms of a Warranty Payable, will it be presented in the current…

A: Warranty Payable:-It is a liability for the company which means the company has to pay for repair…

Q: e amount of warranty expense-

A: Warrant expense = Units of sales * Rate of repairs * Average cost of repairs per unit

Q: The primary reason for preparing a reconciliation between interest-bearing obligations outstanding…

A:

Q: Suppose the obligation of the debtor is to do something and he fails to do it or performs it in…

A: when there is business  between two or more person ,  there is  agreements . when one person does…

Q: The following are disclosed when there are related party transactions during the periods covered by…

A: Hi student Since there are multiple questions, we will answer only first question.  Full disclosure…

Q: The current portion of long-term debt should a.be reclassified as a current liability b.be paid…

A: The liabilities which are payable within one year are considered but the liabilities having life…

Q: 8. When specified receivables are used to secure for a loan on a notification basis, which…

A: The account receivables are the current assets of the company, they represent the sale made by the…

Q: Account of a debtor must be written off as irrecoverable..what is a document of this transaction?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: When an entity breaches a covenant under a long-term loan agreement on or before the end of the…

A: International Accounting Standards (IAS) 1 deals with the "classification of liabilities as current…

Q: Describe how the matching principle applies to contingent liabilities (hint: warranties).

A: Introduction:- Contingent liability may or may not occurred in the future. Matching principles…

Q: Example of liabilities include notes payable and taxes payable True False

A: Liabilities refer to the amount that is payable to the outside entity by the company as a result of…

Q: The adjustment to be made for provision for doubtful debt is   O a. Credit profit and loss account…

A: The provision for doubtful debts is also known bad debts or losses on account receivables.

Q: What is meant by Provision for Discount on Debtors and Reserve for Discount on Creditors.

A: Provision for discount on debtors: Discount is allowed for debtors when payment is made with in…

Q: Which of the following is classified as nonmonetary? a. Warranty liability b. Accrued expense c.…

A: The question is multiple choice question Required  Choose the Correct Option.

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: Which of the following is not a liability?

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: What accounts are used to record a contingent warranty liability that is probable and estimable…

A: Warranty is a form of assurance being provided by the seller to the buyer that if there will be any…