CURRENT LIABILITIES AND CONTINGENCIES
IFRS questions are available at the end of this chapter.
F1.Zero-interest-bearing note payable.
F2.Dividends in arrears.
T3.Examples of unearned revenues.
T4.Reporting discount on Notes Payable.
F5.Currently maturing long-term debt.
F6.Excluding short-term debt refinanced.
T7.Accounting for sales tax collected.
F8.Accounting for sick pay.
T9.Social security taxes as liabilities.
F10.Definition of accumulation rights.
T11.Recognizing compensated absences expense.
F12.Accruing estimated loss contingency.
T13.Disclosing gain contingencies.
F14.Sales-type warranty profit.
T15.Fair value of asset retirement obligation.
T16.Reporting a litigation liability.
F17.Expense warranty approach.
F18.Acid-test ratio components.
F19.Affect on current ratio.
T20.Reporting current liabilities.
d21.Definition of a liability.
d22.Nature of current liabilities.
a23.Recording of accounts payable.
a24.Classification of notes payable.
b25.Classification of discounts on notes payable.
d26.Identify current liability.
c27.Bonds reported as current liability.
d28.Identify item which is not a current liability.
c29.Dividends reported as current liability.
d30.Classification of stock dividends distributable.
c31.Identify item which is not a current liability.
d32.Identify current liability.
c33.Characteristic of current liability.
d34.Definition of a liability.
b35.Importance of liability section of balance sheet.
a36.Current liabilities and operating cycle.
Multiple Choice—Conceptual (cont.)
a37.Present value and concept of a liability.
c38.Zero-interest-bearing notes payable.
d39.Callable debt reporting.
d40.Condition to exclude short-term obligation.
a41.Ability to consummate refinancing of short-term debt.
b42.Disclosure of preferred dividends not declared.
c43.Example of unearned revenue.
d44.Short-term obligations expected to be refinanced.
d45.Ability to consummate refinancing of short-term obligations.
d46.Determine what is a liability.
a47.Classification of sales taxes.
dS48.Disclosure for short-term debt refinanced.
bS49.Vested rights vs. accumulated rights.
dP50.Deductions in computing net pay.
d51.Employer's payroll tax expense.
d52.Accrual of a liability for compensated absences.
c53.Accrual of a liability for compensated absences.
d54.Accrual of a liability for compensated absences.
d56.Requirements for compensated absences accrual.
b57.Condition for sick pay accrual.
c58.Payroll tax deduction.
d59.Definition of a contingency.
b60.Recording contingent liability.
a61.Example of contingent liability.
d62.Recording contingent liability.
d63.Disclosure of a gain contingency.
d64.Disclosure of contingencies.
b65.Accrual of loss contingency.
a66.Litigation and loss contingencies.
c67.Accrual of a contingent liability.
d68.Source of a contingent liability.
b69.Asset retirement obligation.
c70.Asset retirement obligation.
c71.Classification of warranty liability.
c72.Liability accrual due to governmental action.
a73.Accrual of product warranties.
bP74.Determining loss amount to report.
dS75.Reporting lawsuit loss and liability.
dS76.Accrual method for warranty costs.
c77.Accrual warranty method.
d78.Cash-basis warranty method.
a79.Characteristic of expense warranty approach.
b80.Accounting for discount coupon.
a81.Condition to recognize asset retirement obligation.
b82.Recording liability for pending litigation.
d83.Computation of acid-test ratio.
c84.Current ratio information.