Multiple Choice
In accordance with AASB 137 "Provisions,Contingent Liabilities and Contingent Assets",which of the following is considered a contingent liability?
A) Guarantee provided by the parent entity on behalf of a solvent subsidiary.
B) Settlement of a legal case where the company is likely to be held liable for damages in court.
C) Best estimate of likely claims for warranty by customers.
D) Guarantee of an associate's bank overdraft where the associate has declared bankruptcy.
E) None of the given answers.
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Convertible notes are:<br>A) Essentially the same as
Q23: The present obligation component of a liability
Q24: If the entity is offering a higher
Q25: Spoton Co Ltd issues $5 million in
Q29: Examples of equitable or constructive obligations include:<br>A)
Q31: Dubbin Ltd issues $3 million in 5-year,8
Q32: In accordance with AASB 137 "Provisions,Contingent Liabilities
Q35: Provisions are established to allow for future
Q42: In accordance with AASB 137 Provisions,Contingent Liabilities
Q74: Entities are only required to record a