Which of the following statements is not true about provisions? a. Examples of provisions include warranty obligations and pending lawsuits. b. Provisions are classified as current or long-term depending on when the payment is expected to be made. c. Relative to other liabilities, there is less uncertainty about the expected timing or amount for those reported as provisions. d. Provisions are accrued if the payment is probable and the amount can be reasonably estimated.

Which of the following statements is not true about provisions? a. Examples of provisions include warranty obligations and pending lawsuits. b. Provisions are classified as current or long-term depending on when the payment is expected to be made. c. Relative to other liabilities, there is less uncertainty about the expected timing or amount for those reported as provisions. d. Provisions are accrued if the payment is probable and the amount can be reasonably estimated.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 7CYBK

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