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Match the Statements Below with the Appropriate Item

Question 209

Matching

Match the statements below with the appropriate item

Premises:

Responses:

A contractual arrangement that gives the lessee temporary use of property.

Finance lease

The cash paid by the employer to the pension plan is defined.

Contingent liability

A contractual arrangement which is in effect a purchase of property.

Operating lease

A liability of uncertain timing or amount.

Provision

A potential liability that may become an actual liability in the future.

Defined-contribution plan

Premises:

A contractual arrangement that gives the lessee temporary use of property.

The cash paid by the employer to the pension plan is defined.

A contractual arrangement which is in effect a purchase of property.

A liability of uncertain timing or amount.

A potential liability that may become an actual liability in the future.

Responses:

Finance lease

Contingent liability

Operating lease

Provision

Defined-contribution plan

Correct Answer:

Premises:

Responses:

A contractual arrangement that gives the lessee temporary use of property.

The cash paid by the employer to the pension plan is defined.

A contractual arrangement which is in effect a purchase of property.

A liability of uncertain timing or amount.

A potential liability that may become an actual liability in the future.