DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Topic : 12-01 Liability Definition and Categories
Bloom's : Remember
Difficulty : Easy
2) Under ASPE, only legal obligations are recognized.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-08 Classify liabilities as current or long-term.
Topic : 12-67 Looking Forward
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-03 Constructive Obligations
Version 1 1
mynursytest.store
,DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
4) A contingency may become a provision if the likelihood of the contingent event greatly
increases.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-05 Apply the appropriate measurement concepts to account for provisions.
Topic : 12-32 Contingency
5) Under IFRS, most financial liabilities are valued at fair value.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-04 Categories of Liabilities
Topic : 12-05 Categories of Financial Liabilities
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-05 Categories of Financial Liabilities
7) Loan guarantees are only recorded if they are likely to be paid.
Version 1 2
mynursytest.store
,DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-02 Account for common financial liabilities.
Topic : 12-12 Loan Guarantees
8) Accrued liabilities made due to routine operating expenses are not normally discounted.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-02 Account for common financial liabilities.
Topic : 12-07 Discounting
Topic : 12-14 Monetary Accrued Liabilities
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-02 Account for common financial liabilities.
Topic : 12-07 Discounting
Topic : 12-14 Monetary Accrued Liabilities
10) Under IFRS, provisions are always recorded at their expected value.
Version 1 3
mynursytest.store
, DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-07 Discounting
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-07 Discounting
12) Under ASPE, contingent liabilities which are more likely than not, are accrued at the
lowest end of the range.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Easy
Topic : 12-67 Looking Forward
Learning Objective : 12-10 Explain how liabilities are treated in a statement of cash flows.
13) Contingent assets may be recorded under ASPE but not under IFRS.
⊚ true
⊚ false
Version 1 4
mynursytest.store
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Topic : 12-01 Liability Definition and Categories
Bloom's : Remember
Difficulty : Easy
2) Under ASPE, only legal obligations are recognized.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-08 Classify liabilities as current or long-term.
Topic : 12-67 Looking Forward
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-03 Constructive Obligations
Version 1 1
mynursytest.store
,DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
4) A contingency may become a provision if the likelihood of the contingent event greatly
increases.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-05 Apply the appropriate measurement concepts to account for provisions.
Topic : 12-32 Contingency
5) Under IFRS, most financial liabilities are valued at fair value.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-04 Categories of Liabilities
Topic : 12-05 Categories of Financial Liabilities
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-05 Categories of Financial Liabilities
7) Loan guarantees are only recorded if they are likely to be paid.
Version 1 2
mynursytest.store
,DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-02 Account for common financial liabilities.
Topic : 12-12 Loan Guarantees
8) Accrued liabilities made due to routine operating expenses are not normally discounted.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-02 Account for common financial liabilities.
Topic : 12-07 Discounting
Topic : 12-14 Monetary Accrued Liabilities
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Learning Objective : 12-02 Account for common financial liabilities.
Topic : 12-07 Discounting
Topic : 12-14 Monetary Accrued Liabilities
10) Under IFRS, provisions are always recorded at their expected value.
Version 1 3
mynursytest.store
, DOWNLOAD THE Test Bank for Intermediate Accounting Volume 2 8th Editio
Beechy
Intermediate Accounting Volume II 8th Edition by Beechy
Ch12
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-07 Discounting
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
Question Details
Accessibility : Keyboard Navigation
Learning Objective : 12-01 Define and distinguish between financial and non-financial liabilities and
Bloom's : Remember
Difficulty : Easy
Topic : 12-07 Discounting
12) Under ASPE, contingent liabilities which are more likely than not, are accrued at the
lowest end of the range.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Easy
Topic : 12-67 Looking Forward
Learning Objective : 12-10 Explain how liabilities are treated in a statement of cash flows.
13) Contingent assets may be recorded under ASPE but not under IFRS.
⊚ true
⊚ false
Version 1 4
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