Intermediate Accounting Volume 2 Seventh Canadian Edition Test Bank

Intermediate Accounting Volume 2 Seventh Canadian Edition Test Bank is your go-to resource for exam success, featuring expert insights and real-world applications.

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ExamName___________________________________TRUE/FALSE.Write 'T' if the statement is true and 'F' if the statement is false.1)Conceptually, liabilities constitute a present obligation as a result of a past event andentail an expected future sacrifice of assets or services.1)_______2)Under ASPE, only legal obligations are recognized.2)_______3)A reasonable expectation on the part of a company's stakeholders arising from acompany's past practices or behaviour may constitute a constructive obligation in certaininstances.3)_______4)A contingency may become a provision if the likelihood of the contingent event greatlyincreases.4)_______5)Under IFRS, most financial liabilities are valued at Fair Value.5)_______6)An improvement to a company's credit rating under IFRS will lead to a reduction in thecarrying amount of any financial liabilities and a gain being reported in OCI.6)_______7)Loan guarantees are only recorded if they are likely to be paid.7)_______8)Accrued liabilities made due to routine operating expenses are not normally discounted.8)_______9)For a small population, the best estimate for the amount of a provision that must berecognized is the expected value of the possible outcomes.9)_______10)Under IFRS, provisions are always recorded at their expected value.10)______11)For a large population, the best estimate for the amount of a provision that must berecognized is the most likely outcome with respect to the expected value and cumulativeprobabilities.11)______12)Under ASPE, contingent liabilities which are more likely than not, are accrued at thelowest end of the range.12)______13)Contingent assets may be recorded under ASPE but not under IFRS.13)______14)Executory contracts seldom require a journal entry, while onerous contracts do.14)______15)Discounting is not required when the time value of money is immaterial or if the amountand timing of cash flows is highly uncertain.15)______16)Financial liabilities are initially recognized at fair value and at cost, amortized cost orfair value post-acquisition.16)______17)A company decides to relocate a group from a discontinued business segment to adivision with ongoing operations. The expenses incurred in doing so would qualify as arestructuring charge.17)______18)Under the warranty expense approach, there should be no income statement effects forwarranty

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Intermediate Accounting by Thomas B...

Intermediate Accounting Volume 2 Seventh Canadian Edition Test Bank

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