Which is the proper way to report a contingent asset? a. As an asset b. No disclosure and no accrua c. An unrealized revenue d. As a disclosure only

Q: A present obligation that is probable and for which the amount can be reliably estimated should…

A: The estimated expenses are the expenses which can be valued on the basis of past experiences or…

Q: How should (i) a change in calculating the provision for doubtful accounts, and (ii) change in…

A: The provision for doubtful accounts is accounting estimates that change on a yearly basis. It is…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at…

A: Property, plant, and equipment (PPE) are long-term assets that are crucial to business operations.…

Q: If the borrowing is not directly attributable to a qualifying asset, the borrowing cost is expensed…

A: Assets that take a significant amount of time so that they can be used in business by the entity are…

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: PRO Which of the 1. Financial assets in the form of investments in subsidiaries, associates and…

A: PAS 32 covers Contracts for delivery or receipt of commodity and other non financial assets that can…

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A: Expense recognition refers to the accounting process of recording expenses in the financial…

Q: What is the authoritative literature addressing revenue recognition when right of return exists?

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: Explain the conditions under which assets and liabilities are derecognized

A: The answer for the theory question on the conditions under which assets and liabilities are…

Q: Which of the following statement/s are incorrect? I. An enterprise should not recognize a contingent…

A: solution : Which of the following statement/s are incorrect? Answer : Only statement (iii) is…

Q: When should a contingent liability be recognized and reported on the financial statements?  A.…

A: Contingent liability: A liability can occur on future uncertain events.

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A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: distinguish between current and non-current assets, and current and non-current liabilitie

A: Any asset which is convertible in terms of cash within a time duration of one year is a current…

Q: Which of the following accountin justification for the fact that the c non-current asset is reported…

A: Solution: "Going Concern" accounting concept  provides justification for the fact that the carrying…

Q: an IS O a capital or a venue nature forms part of the subjective test. elect one: True False

A: Accounting concepts/ conventions and principles are the guidelines for taking various accounting…

Q: Which of the following expenditure is not capital expenditure for equipment? a. Assembly b. Testing…

A: Capital expenditure for a equipment are the cost associated with equipment until it is put to use.

Q: rue or False Unearned revenue is revenue that is earned but not yet collected

A: Solution Concept Unearned revenue                 The term unearned revenue means the revenue which…

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A: Current assets are those assets which are already in cash or can be converted into cash into short…

Q: A currently maturing obligation of the entity is classified on the SFP as a?

A: Here SFP stands for statement of financial position. In a SFP different assets and liabilities are…

Q: 1. Contingent assets need not be disclosed in the financial statements or the notes thereto if they…

A: Contingent assets means those assets the inflow of which depend upon future uncertain event.…

Q: 1. Which of the following may be measured subsequently at amortized cost? a. None of these b. A…

A: solution note: dear student as per the bartleby guideline we are required to solve the first…

Q: What is unearned revenue? Why is it considered a liability? Does unearned revenue impact both the…

A: The adjustment entries are prepared for deferred, accrued revenue and expenses for the period. The…

Q: What is meant by the term unearned revenue? Where should an unearned revenue account appear in the…

A: Revenue: It refers to the amount earned by a business from selling its goods or services to the…

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A: Income statement:   In this statement, the financial records of the company's monetary performance…

Q: A deposit received is reported as a *   current asset investment revenue

A: Note: As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

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A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

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A:

Q: 17. Gain contingencies should a. be accrued if they are probable and can be reasonably estimated…

A: Gain Contingencies A gain contingency is an uncertain situation which will be resolved within the…

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A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

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A: Introduction: Fixed Assets: The benefits from the assets are having more than one year called as…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: True or False: Depreciation is an example of a contra asset account.

A: On a company's balance sheet, a contra asset account is matched with a related asset account. In…

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A: Fixed asset is an tangible asset,non current asset.

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Q: measuring and recognizing impairment loss on receivables?

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.