MCQfromQuizes

MCQfromQuizes - Chapter 13 1.

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Chapter 13 1. Which of the following commitments would NOT require disclosure in the Student Response 1.  Large purchases of materials in the normal course of business. 2.  Commitments involving significant risk. 3.  Payments under non-cancellable operating leases. 4.  Major property, plant and equipment expenditures 2. Under current IFRS requirements, a contingent liability is recognized if  Student Response 1.  the amount of the loss can be reliably estimated and it is probable  that an asset has been impaired or a liability incurred as of the  financial statement date. 2.  the amount of the loss cannot be measured reliably but it is probab that an asset has been impaired or a liability incurred as of the  financial statement date. 3.  it relates to a lawsuit commenced after the balance sheet date, the outcome of which can be reliably measured. 4.  it relates to an asset recognized as impaired after the balance shee date. 3. A liability for compensated absences such as vacations, for which it is ex paid, should  Student Response 1.  not be accrued unless a written contractual obligation exists. 2.  be accrued during the period following vesting.
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Student Response 3.  be accrued during the period when the compensated time is  expected to be used by employees. 4.  be accrued during the period when earned. 4. What are the current International Financial Reporting Standards regardi (such as frequent flyer points)?  Student Response 1.  The current proceeds are to be split between the original transactio and the award credits (as unearned revenue). 2.  They are recognized only when customers redeem their points. 3.  They are not explicitly addressed. 4.  They are recognized only in the financial statement notes. 5. Which of the following statements is FALSE?  Student Response 1.  Under the cash basis method, warranty costs are charged to  expense as they are paid. 2.  A company may exclude a short-term obligation from current  liabilities if, at balance sheet date, the entity expects to refinance  under an existing agreement for at least a year, and the decision is solely at its discretion. 3.  Cash dividends should be recorded as a liability when they are  declared by the board of directors. 4.  Federal income taxes withheld from employees' payroll cheques  should never be recorded as a liability
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Chapter 14 1. Moss Corp issued ten year bonds with a maturity value of $400,000. If th premium, this indicates that  Student Response 1.  the market and stated rates were the same.
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This note was uploaded on 01/01/2012 for the course ACCT 531 taught by Professor Janicecharko during the Winter '11 term at Humber.

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MCQfromQuizes - Chapter 13 1.

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