Multiple Choice
Pending lawsuits
A) Are always considered estimated liabilities
B) Should always be recorded
C) Should always be disclosed
D) Should be disclosed if payment for damages is probable but the amount cannot be reliably estimated
E) None of these
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Which of the following is created by
Q34: A warranty is a contingent liability.
Q35: Estimated liabilities can arise from<br>A)warranties.<br>B)property taxes.<br>C)income taxes.<br>D)employee
Q36: Employee vacation benefits<br>A)are estimated liabilities.<br>B)are contingent liabilities.<br>C)become
Q37: Amounts received in advance from a customer
Q39: Discuss how to account for contingent liabilities.
Q40: Provisions must be recorded if<br>A)The future event
Q41: A note payable can be used to
Q42: The relevance principle requires that contingent assets
Q43: Explain the concept of interest.