TEST BANK
FOR
Intermediate Accounting
Volume 2 8E Beechy, Conrod, Farrell, McLeod-
Dick, Tomulka, Sevel
Chapter 12-22
NexusVault
,NexusVault
,TEST BANK FOR
Intermediate Accounting Volume 2 8E Thomas H. Beechy, Joan E. Conrod,
Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Chapter 12-22 Answers are at the End of Each Chapter
Chapter 12
Student name:
1) Conceptually, liabilities constitute a present obligation as a result of a past event and entail an
expected future sacrifice of assets or services.
⊚ true
⊚ false
2) Under ASPE, only legal obligations are recognized.
⊚ true
⊚ false
3) A reasonable expectation on the part of a company's stakeholders arising from a company's
past practices or behaviour may constitute a constructive obligation in certain instances.
⊚ true
⊚ false
4) A contingency may become a provision if the likelihood of the contingent event greatly
increases.
⊚ true
⊚ false
5) Under IFRS, most financial liabilities are valued at fair value.
⊚ true
⊚ false
NexusVault
, 6) An improvement to a company's credit rating under IFRS will lead to a reduction in the
carrying amount of any financial liabilities and a gain being reported in OCI.
⊚ true
⊚ false
7) Loan guarantees are only recorded if they are likely to be paid.
⊚ true
⊚ false
8) Accrued liabilities made due to routine operating expenses are not normally discounted.
⊚ true
⊚ false
9) For a small population, the best estimate for the amount of a provision that must be
recognized is the expected value of the possible outcomes.
⊚ true
⊚ false
10) Under IFRS, provisions are always recorded at their expected value.
⊚ true
⊚ false
11) For a large population, the best estimate for the amount of a provision that must be
recognized is the most likely outcome with respect to the expected value and cumulative
probabilities.
⊚ true
⊚ false
12) Under ASPE, contingent liabilities which are more likely than not, are accrued at the lowest
end of the range.
⊚ true
⊚ false
NexusVault
FOR
Intermediate Accounting
Volume 2 8E Beechy, Conrod, Farrell, McLeod-
Dick, Tomulka, Sevel
Chapter 12-22
NexusVault
,NexusVault
,TEST BANK FOR
Intermediate Accounting Volume 2 8E Thomas H. Beechy, Joan E. Conrod,
Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Chapter 12-22 Answers are at the End of Each Chapter
Chapter 12
Student name:
1) Conceptually, liabilities constitute a present obligation as a result of a past event and entail an
expected future sacrifice of assets or services.
⊚ true
⊚ false
2) Under ASPE, only legal obligations are recognized.
⊚ true
⊚ false
3) A reasonable expectation on the part of a company's stakeholders arising from a company's
past practices or behaviour may constitute a constructive obligation in certain instances.
⊚ true
⊚ false
4) A contingency may become a provision if the likelihood of the contingent event greatly
increases.
⊚ true
⊚ false
5) Under IFRS, most financial liabilities are valued at fair value.
⊚ true
⊚ false
NexusVault
, 6) An improvement to a company's credit rating under IFRS will lead to a reduction in the
carrying amount of any financial liabilities and a gain being reported in OCI.
⊚ true
⊚ false
7) Loan guarantees are only recorded if they are likely to be paid.
⊚ true
⊚ false
8) Accrued liabilities made due to routine operating expenses are not normally discounted.
⊚ true
⊚ false
9) For a small population, the best estimate for the amount of a provision that must be
recognized is the expected value of the possible outcomes.
⊚ true
⊚ false
10) Under IFRS, provisions are always recorded at their expected value.
⊚ true
⊚ false
11) For a large population, the best estimate for the amount of a provision that must be
recognized is the most likely outcome with respect to the expected value and cumulative
probabilities.
⊚ true
⊚ false
12) Under ASPE, contingent liabilities which are more likely than not, are accrued at the lowest
end of the range.
⊚ true
⊚ false
NexusVault
