Day 10 Flashcards
1
Q
For a contingent liability, if all amounts are equally probable. What amount should be accrued?
A
The lowest estimate
MCQ-00736
2
Q
A contingent liability, “reasonably possible”
A
Disclose
DO NOT ACCRUE
MCQ-00912
3
Q
What is an effective method for detecting discrepancies in the Statement of Changes in Equity related to Stock Options?
A
Reviewing the terms of the Stock Option plan
4
Q
What is a “Large Stock Dividend”?
A
a Stock Dividend of more than 25% of the current Outstanding Stock
When this happens:
RE is debited for the par value
and
Common Stock is credited for the par value
5
Q
A
