Firms do not recognize certain obligations that are uncertain as to amount or timing or both as liabilities, unless those items meet a probability threshold and have a reliable measurement attribute. IFRS refers to these as _____, such as the possible obligation under an unsettled lawsuit
a. contingent liabilities
b. unrealized contingencies
c. realized contingencies
d. unrecognized contingencies
e. recognized contingencies
A
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A problem for a CPA associated with advanced IT systems is that:
A. The audit trail is sometimes generated only in machine readable form. B. The client's internal auditors may have been involved at the design stage. C. Tests of controls are not possible. D. The audit trail normally does not exist.
Motor Sales sold its old office furniture for $6000. The original cost was $16,000, and at the time of sale, accumulated depreciation was $14,000. What is the effect of this transaction?
A) gain of $6000 B) gain of $4000 C) loss of $4000 D) loss of $6000
Ellen, who has a good driving record, purchases automobile insurance from an insurance company. Ellen cannot assign her rights to be insured to another driver for which of the following reasons?
A) The assignment would materially alter the risk and duties of the insurance company. B) Claiming insurance is a future right and hence cannot be assigned. C) Insurance is a personal service contract and hence cannot be assigned. D) Personal contracts like insurance are assignable only with the agreement of all parties involved in the contract.
Internal consistency is the degree to which the individual questions of a construct are correlated.
Answer the following statement true (T) or false (F)