This Is A Test Bank Of Test (Study Questions) To Help You Prepare For the
Tests
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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
,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
, 13) Contingent assets may be recorded under ASPE but not under IFRS.
⊚ true
⊚ false
14) Executory contracts seldom require a journal entry, while onerous contracts do.
⊚ true
⊚ false
15) Discounting is not required when the time value of money is immaterial or if the amount and
timing of cash flows is highly uncertain.
⊚ true
⊚ false
16) Financial liabilities are initially recognized at fair value and at cost, amortized cost or fair
value post-acquisition.
⊚ true
⊚ false
17) A company decides to relocate a group from a discontinued business segment to a division
with ongoing operations. The expenses incurred in doing so would qualify as a restructuring
charge.
⊚ true
⊚ false
18) Under the warranty expense approach, there should be no income statement effects for
warranty repairs performed after the year of sale (assuming that accrued warranty expenses
and expenditures equal one another).
⊚ true
⊚ false
Tests
To Clarify, This Is A Test Bank, Not A Textbook You Have Immediate
Access To Download Your Test Bank.
No Delays In Loading Is Fast And Instant Immediately After Purchase! You
Will
Receive A Full Bank Of Tests, In Other Words, All Chapters Will Be There.
Test Banks Are Presented In PDF Format Therefore, No Special Softwar Is
Required To Download Them
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
,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
, 13) Contingent assets may be recorded under ASPE but not under IFRS.
⊚ true
⊚ false
14) Executory contracts seldom require a journal entry, while onerous contracts do.
⊚ true
⊚ false
15) Discounting is not required when the time value of money is immaterial or if the amount and
timing of cash flows is highly uncertain.
⊚ true
⊚ false
16) Financial liabilities are initially recognized at fair value and at cost, amortized cost or fair
value post-acquisition.
⊚ true
⊚ false
17) A company decides to relocate a group from a discontinued business segment to a division
with ongoing operations. The expenses incurred in doing so would qualify as a restructuring
charge.
⊚ true
⊚ false
18) Under the warranty expense approach, there should be no income statement effects for
warranty repairs performed after the year of sale (assuming that accrued warranty expenses
and expenditures equal one another).
⊚ true
⊚ false
