Ans T LO 5 Bloom K Difficulty Easy Min 1 AACSB Analytic AICPA BB International

Ans t lo 5 bloom k difficulty easy min 1 aacsb

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Ans: T, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRS4.IFRS allows for reduced disclosure of contingent liabilities if the disclosure could increase the company`s chance of losing a lawsuit.Ans: F, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRS13 - 52
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Current Liabilities and Contingencies5.Contingent liabilities are not reported in the financial statements but may be disclosed in the notes to the financial statements if the likelihood of an unfavorable outcome is possible.Ans: T, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRS6.A company can exclude a short-term obligation from current liabilities if it intends to refinance the obligation and has an unconditional right to defer settlement of the obligation for at least 12 months following the due date.Ans: F, LO: 5, Bloom: K, Difficulty: Moderate, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC:Communication, IMA: Reporting, IFRS7.Provisions are only recorded if it is likely that the company will have to settle an obligation atsome point in the future.Ans: F, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRS8.An onerous contract is one in which the unavoidable costs of satisfying the obligations outweigh the economic benefits to be received.Ans: T, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRS9.Contingent assets are not reported in the statement of financial position.Ans: T, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRS10.IFRS uses the term “contingent” for assets and liabilities not recognized in the financial statement.Ans: T, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA BB: International Perspective, AICPA FN: Reporting, AICPA PC: Communication,IMA: Reporting, IFRSAnswers to True / False:1.False2.True3.True4.False5.True6.False7.False8.True9.True10.True13 - 53
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Test Bank for Intermediate Accounting, Sixteenth EditionMultiple Choice:
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