Contingencies Flashcards
1
Q
If contingent liability is probable and estimable between a range, choose:
A
The lower amount in the range
IFRS: pick middle value
2
Q
Contingent gains:
A
Disclose the nature and an undetermined amount within a range
3
Q
Related party transaction contingencies require:
A
Require disclosure
4
Q
Probable and estimatable
A
Disclosure and accruement of lowest estimate
5
Q
Reasonably possible
A
Disclosure
6
Q
Remote
A
Ignore
7
Q
Contingent liability for a discounted note should be disclosed:
A
At the maturity value of the note
8
Q
Damages awarded in lawsuit are NOT recognized if:
A
the appeals process is not completed
9
Q
If an insurance policy is in place to protect against damages:
A
Accrue deductible of the policy instead of the estimated amount.
