Credit guarantees. Because contingent liabilities are those liabilities which may or may arise depending upon the Future events.
Which of the following is a contingent liability? Select one: A. Notes payable X B. Credit...
match the following: Deferred revenues Disclosure of a contingent liability Notes payable Recording a contingent liability Current portion of long-term debt Match each of the options above to the items below. A written promise to repay the amount borrowed plus interest. Loss is probable and amount is reasonably estimable. Debt that will be paid within one year of the balance sheet date. Loss is reasonably possible and amount is reasonably estimable. A liability that requires the sacrifice of something other...
Which one of the following would be considered a contingent liability? Select one: 0 A. A company owes $44,000 on inventories purchased on credit o B. The company has access to a line of credit with a bank in the amount of $576,000 O o C. A company estimates that it will probably have to pay $48,000 to the Department of Environment Protection for a chemical spill D. A company has $980,000 worth of bonds outstanding E. The company believes...
Which one of the following would be considered a contingent liability? Select one: A. A company has 51,690,000 worth of bonds outstanding. B. A company estimates that it will probably have to pay $2,200,000 to the Department of Environment Protection for a chemical spill C. The company has access to a line of credit with a bank in the amount of $3,000,000 D. A company owes $200,000 on inventories purchased on credit.
Which one of the following would be considered a contingent liability? A) A company estimates that it will probably have to pay $75,000 to the EPA for a chemical spill. B) A company owes $35,000 on inventories purchased on credit. C) A company has access to a line of credit with a bank in the amount of $120,000. D) A company believes that it is reasonably possible it will lose a lawsuit and damages could be $100,000. E) None of...
pters 7-9 Match the following Current portion of long-term debt Notes payable Recording a contingent liability Disclosure of a contingent liability Deferred revenues Match each of the options above to the Items below. A written promise to repay the amount borrowed plus interest Loss is probable and amount is reasonably estimable Debt that will be paid within one year of the balance sheet date. Loss is reasonably possible and amount is reasonably estimable. A liability that requires the sacrifice of...
Which of the following accounts could not be classified as a current liability? A.) notes payable (due in 5 years) B.)accounts payable C.)current portion of long-term note payable D.)notes payable (due in 11 months) E.) unearned Revenue
1. What is your question? fx B I x, x A certain contingent liability was evaluated at year-end, and considered to have a reasonable possibility of becoming an actual lability. If the accountant decided not to report it in the notes to the financial statement, what effect would this have on the financial reporting of the company? a. The liabilities on the balance sheet would be understated. b. The information about the transaction would be inadequately disclosed in the notes....
Which of the following is not a current liability? Sales tax payable; Payroll taxes payable; c. Unearned revenues; D. Allowance for doubtful accounts. B. Which of the following is not a current liability? Discount on Bonds Payable due in 7 years; Wages Payable; Estimated Warranty Payable for items sold with a one year warranty: Out of court litigation settlement liability due to be paid next month. B. Page 2 of 6 Which of the following is not a payroll tax...
Assume the deduction or credit is not phased out. Which statement is correct ? Select one: a. Tax deductions reduce tax liability b. Tax credits reduce tax liability on a dollar-for-dollar basis. c. Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers. d. The benefit of a tax credit depends on the taxpayer's marginal tax rate.
Which of the following is not a type of current liability? Choose one. Contingent liabilities. Pre-existing liabilities. Current portions of long term debt. Estimated liabilities. Clearly determinable liabilities.