When should the liability associated with a product warranty be recorded? What happens to a contingent liabili
Q. When should the liability associated with a product warranty be recorded? What happens to a contingent liability if the event does not take place?
Asked by angel_rat_83 - Sun Nov 5 18:55:40 2006 - - 1 Answers - 0 Comments
A. 1) when the accident happens 2) contingent liability expires
Answered by Smilin' Fred - Sun Nov 5 21:48:56 2006
Q. When should the liability associated with a product warranty be recorded? What happens to a contingent liability if the event does not take place?
Asked by angel_rat_83 - Sun Nov 5 18:55:40 2006 - - 1 Answers - 0 Comments
A. 1) when the accident happens 2) contingent liability expires
Answered by Smilin' Fred - Sun Nov 5 21:48:56 2006
why is warranty expenses considered as a provision and not a contingent liability?
Q. why is warranty expenses considered as a provision and not a contingent liability?
Asked by silky s - Sat Aug 25 21:51:42 2007 - - 4 Answers - 0 Comments
A. Provisions for warranties are governed by IAS 37 provisions, contingent liabilities and contingent assets the key definitions are: Provision: A liability of uncertain timing or amount. Liability: * Present obligation as a result of past events * Settlement is expected to result in an outflow of resources (payment) Contingent liability: * a possible obligation depending on whether some uncertain future event occurs, or * a present obligation but payment is not probable or the amount cannot be measured reliably When a manufacturer gives a warranty, it satisfies the criteria for a liability - there is a legal obligation and settlement is expected to result in an outflow of resources (whether by payment to repair the defect or by… [cont.]
Answered by Sandy - Sat Aug 25 22:22:36 2007
Q. why is warranty expenses considered as a provision and not a contingent liability?
Asked by silky s - Sat Aug 25 21:51:42 2007 - - 4 Answers - 0 Comments
A. Provisions for warranties are governed by IAS 37 provisions, contingent liabilities and contingent assets the key definitions are: Provision: A liability of uncertain timing or amount. Liability: * Present obligation as a result of past events * Settlement is expected to result in an outflow of resources (payment) Contingent liability: * a possible obligation depending on whether some uncertain future event occurs, or * a present obligation but payment is not probable or the amount cannot be measured reliably When a manufacturer gives a warranty, it satisfies the criteria for a liability - there is a legal obligation and settlement is expected to result in an outflow of resources (whether by payment to repair the defect or by… [cont.]
Answered by Sandy - Sat Aug 25 22:22:36 2007
Contingent liability - REALLY NEED HELP IN ACCOUNTING?
Q. what if your being sued by your competitor? however, your lawyer said that they dont have strong case and you wont be likely to pay. lawsuit is worth 75000 and proceedings is not yet started. you didn't include it in your financial statement and didn't disclose it coz you think you wont lose. what's the proper measurement, reporting, and disclosing?
Asked by honey - Wed Mar 12 00:02:33 2008 - - 3 Answers - 0 Comments
A. Based on advice from the experts that losing the case is not probable AND seeing that proceedings have not started, I would not disclose the case. Since these things drag on for yrs, I would re-evaluate this at next year-end and decide accordingly. But do remember to let your auditors know as they may have different ideas.
Answered by Sandy - Wed Mar 12 08:12:20 2008
Q. what if your being sued by your competitor? however, your lawyer said that they dont have strong case and you wont be likely to pay. lawsuit is worth 75000 and proceedings is not yet started. you didn't include it in your financial statement and didn't disclose it coz you think you wont lose. what's the proper measurement, reporting, and disclosing?
Asked by honey - Wed Mar 12 00:02:33 2008 - - 3 Answers - 0 Comments
A. Based on advice from the experts that losing the case is not probable AND seeing that proceedings have not started, I would not disclose the case. Since these things drag on for yrs, I would re-evaluate this at next year-end and decide accordingly. But do remember to let your auditors know as they may have different ideas.
Answered by Sandy - Wed Mar 12 08:12:20 2008
Determine whether the bank guarantee meets the definition of a provision or a contingent liability?
Q. Goldilocks signed an agreement with Bank Sweet to the effect that Goldilocks would guarantee a loan made by Banco Filipino to Goldilocks' subsidiary, Becky's. Becky's loan with Banco Filipino was 3,200,000Php as at June 30,2008. Becky's was in a strong financial position at June 30,2008. Determine whether the bank guarantee meets the definition of a provision or a contingent liability. (Accountants and accountancy students, please help me analyze)
Asked by ebbor - Mon Sep 7 21:40:16 2009 - - 1 Answers - 0 Comments
A. Answer: This would fell under contigency only. By definition given by the PAS, a provision is a liability of uncertain timing or amount. A provision should be recognised when, and only when: (a) an entity has a present obligation (legal or constructive) as a result of a past event; (b) it is probable (ie more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. The Standard notes that it is only in extremely rare cases that a reliable estimate will not be possible. A contingent liability is: (a) a possible obligation that arises from past events and whose existence will be confirmed only by the… [cont.]
Answered by EJ (Philippines) - Mon Sep 7 22:09:13 2009
Q. Goldilocks signed an agreement with Bank Sweet to the effect that Goldilocks would guarantee a loan made by Banco Filipino to Goldilocks' subsidiary, Becky's. Becky's loan with Banco Filipino was 3,200,000Php as at June 30,2008. Becky's was in a strong financial position at June 30,2008. Determine whether the bank guarantee meets the definition of a provision or a contingent liability. (Accountants and accountancy students, please help me analyze)
Asked by ebbor - Mon Sep 7 21:40:16 2009 - - 1 Answers - 0 Comments
A. Answer: This would fell under contigency only. By definition given by the PAS, a provision is a liability of uncertain timing or amount. A provision should be recognised when, and only when: (a) an entity has a present obligation (legal or constructive) as a result of a past event; (b) it is probable (ie more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation. The Standard notes that it is only in extremely rare cases that a reliable estimate will not be possible. A contingent liability is: (a) a possible obligation that arises from past events and whose existence will be confirmed only by the… [cont.]
Answered by EJ (Philippines) - Mon Sep 7 22:09:13 2009
What is the treatment of contingent liabilities in the financial statements?
Q. What is the treatment of contingent liabilities in the financial statements?
Asked by mahesh n - Wed Jan 23 23:53:29 2008 - - 1 Answers - 0 Comments
A. Disclosed in the footnotes if they are material. Depending on the nature of the liability it may have to be accrued on the balance sheet or not.
Answered by MagicalMke - Thu Jan 24 01:13:48 2008
Q. What is the treatment of contingent liabilities in the financial statements?
Asked by mahesh n - Wed Jan 23 23:53:29 2008 - - 1 Answers - 0 Comments
A. Disclosed in the footnotes if they are material. Depending on the nature of the liability it may have to be accrued on the balance sheet or not.
Answered by MagicalMke - Thu Jan 24 01:13:48 2008
Can someone help me identify two contingent liabilities of a definite amount and two contingent liabilities of
Q. It's for my accounting homework, however, the answer doesn't seem to be found in my textbook, so I was wondering if anyone on here can help me out. Thanks in advance!
Asked by Mike2025 - Sat Jan 12 22:04:56 2008 - - 1 Answers - 0 Comments
A. If I am not mistaken, an example of a contingent liability of a definite amount would be a service contract with the U.S. Army. The contract is established for a certain amount of money, say $10,000,000.00. You know at the end of this contract your company would have collected a total of ten million dollars, but it was contingent on the events over a course of time. An example of a contingent liability of an indefinite amount would be something like an outstanding lawsuit. Your company could be suing for 250 million dollars, but the definite amount will not be established until the verdict has been said and there are no further appeals and the debt is actually being paid. I see you have asked for two examples of each, but this… [cont.]
Answered by eldvb - Sat Jan 12 22:21:24 2008
Q. It's for my accounting homework, however, the answer doesn't seem to be found in my textbook, so I was wondering if anyone on here can help me out. Thanks in advance!
Asked by Mike2025 - Sat Jan 12 22:04:56 2008 - - 1 Answers - 0 Comments
A. If I am not mistaken, an example of a contingent liability of a definite amount would be a service contract with the U.S. Army. The contract is established for a certain amount of money, say $10,000,000.00. You know at the end of this contract your company would have collected a total of ten million dollars, but it was contingent on the events over a course of time. An example of a contingent liability of an indefinite amount would be something like an outstanding lawsuit. Your company could be suing for 250 million dollars, but the definite amount will not be established until the verdict has been said and there are no further appeals and the debt is actually being paid. I see you have asked for two examples of each, but this… [cont.]
Answered by eldvb - Sat Jan 12 22:21:24 2008
what is contingent liability?
Q. what is contingent liability?
Asked by Zain M - Wed Oct 8 09:08:52 2008 - - 1 Answers - 0 Comments
Q. what is contingent liability?
Asked by Zain M - Wed Oct 8 09:08:52 2008 - - 1 Answers - 0 Comments
does anyone know , what type of account sinking fund is?provision?contingent liability or...?
Q. does anyone know , what type of account sinking fund is?provision?contingent liability or...?
Asked by Suzy - Thu Mar 13 21:01:11 2008 - - 2 Answers - 0 Comments
A. I would guess an asset with a debit balance. The purpose as I understand it is to accumulate funds to pay of a liability when it comes do. Therefore is should be the opposite of the liability.
Answered by STEVEN F - Thu Mar 13 21:13:14 2008
Q. does anyone know , what type of account sinking fund is?provision?contingent liability or...?
Asked by Suzy - Thu Mar 13 21:01:11 2008 - - 2 Answers - 0 Comments
A. I would guess an asset with a debit balance. The purpose as I understand it is to accumulate funds to pay of a liability when it comes do. Therefore is should be the opposite of the liability.
Answered by STEVEN F - Thu Mar 13 21:13:14 2008
Where can I find an investment bank's contingent assets liabilities statement?
Q. I am currently researching current U.S. pure investment banks. I need to be able to find their contingent assets and liabitlities (i.e. its off-balance sheet activities). I am unable to find OBS statements, no matter how much I google or go to the banks website, I am unable to find them. Can anyone help, please? I am currently focusing on Greenhill Co. Thanks
Asked by livedie - Sun Oct 4 05:28:47 2009 - - 1 Answers - 0 Comments
A. You will not be able to obtain this information because of privacy laws and confidentiality. Sorry
Answered by Yorky - Sun Oct 4 08:49:34 2009
Q. I am currently researching current U.S. pure investment banks. I need to be able to find their contingent assets and liabitlities (i.e. its off-balance sheet activities). I am unable to find OBS statements, no matter how much I google or go to the banks website, I am unable to find them. Can anyone help, please? I am currently focusing on Greenhill Co. Thanks
Asked by livedie - Sun Oct 4 05:28:47 2009 - - 1 Answers - 0 Comments
A. You will not be able to obtain this information because of privacy laws and confidentiality. Sorry
Answered by Yorky - Sun Oct 4 08:49:34 2009
what the different between Provision and contingent liabilities?
Q. please ., i want examples
Asked by Dsalah s - Wed Oct 3 11:33:48 2007 - - 1 Answers - 0 Comments
A. Until the ED is issued as a revised IAS, IAS 37 gives the following definitions: Provision: A liability of uncertain timing or amount. A Liability exists if: * (there is) Present obligation as a result of past events * Settlement is expected to result in an outflow of resources (payment) A Contingent liability exists if there is : * a possible obligation depending on whether some uncertain future event occurs, or * a present obligation but payment is not probable or the amount cannot be measured reliably Recognition of a Provision An enterprise must recognise a provision if, and only if: [IAS 37.14] * a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event), * payment is… [cont.]
Answered by Sandy - Wed Oct 3 23:51:07 2007
Q. please ., i want examples
Asked by Dsalah s - Wed Oct 3 11:33:48 2007 - - 1 Answers - 0 Comments
A. Until the ED is issued as a revised IAS, IAS 37 gives the following definitions: Provision: A liability of uncertain timing or amount. A Liability exists if: * (there is) Present obligation as a result of past events * Settlement is expected to result in an outflow of resources (payment) A Contingent liability exists if there is : * a possible obligation depending on whether some uncertain future event occurs, or * a present obligation but payment is not probable or the amount cannot be measured reliably Recognition of a Provision An enterprise must recognise a provision if, and only if: [IAS 37.14] * a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event), * payment is… [cont.]
Answered by Sandy - Wed Oct 3 23:51:07 2007
Recognizing litigation contingent liabilities question?
Q. The act was committed before financial statements were issued, they are probable of losing, and a reasonable estimate of a $400-$600 loss is estimated. I know I have to recognize the loss for that year but how much if it gives me a range like that. Say if after the statements for that year are issued, we settle for $500, but I know i need to recognize some number before that in the prior year. How much???
Asked by Steve Lippy - Sun Nov 16 13:59:30 2008 - - 2 Answers - 0 Comments
A. You are supposed to recognize the most reasonable estimate. If each number in the range (400-600) is equally as probable, recognize the 400 now, because you won't lose less than that, and the remainder (if any) in a future period. (Read FIN 14 paragraph 3, sequence 15.2.1 for exact standard)
Answered by Steve S - Sun Nov 16 22:54:49 2008
Q. The act was committed before financial statements were issued, they are probable of losing, and a reasonable estimate of a $400-$600 loss is estimated. I know I have to recognize the loss for that year but how much if it gives me a range like that. Say if after the statements for that year are issued, we settle for $500, but I know i need to recognize some number before that in the prior year. How much???
Asked by Steve Lippy - Sun Nov 16 13:59:30 2008 - - 2 Answers - 0 Comments
A. You are supposed to recognize the most reasonable estimate. If each number in the range (400-600) is equally as probable, recognize the 400 now, because you won't lose less than that, and the remainder (if any) in a future period. (Read FIN 14 paragraph 3, sequence 15.2.1 for exact standard)
Answered by Steve S - Sun Nov 16 22:54:49 2008
Accounting liability question?
Q. When a company sells a ticket in advance of an event. Is this an example of an "accural", "contingent liability" or is it someother form of liability.
Asked by Craig L - Sun Mar 30 08:38:08 2008 - - 2 Answers - 0 Comments
A. Actually its "unearned revenue" a current liability (technically a deferral). You will receive cash for the ticket (asset) , but you have yet to deliver the service associated with the sale of the ticket so you must book an offsetting liability for the cash you have received but not earned. This is a classic example of accrual basis accounting whereby the transaction is captured - the exchange of cash is captured but an entry is also made to reflect that you have an obligation to provide a service in the future - revenue is only recognized when it is earned not when cash is received (that is cash accounting) In cash accounting you make entries when you receive or spend cash. Most companies don't use cash accounting as its not… [cont.]
Answered by Michael M - Sun Mar 30 21:02:51 2008
Q. When a company sells a ticket in advance of an event. Is this an example of an "accural", "contingent liability" or is it someother form of liability.
Asked by Craig L - Sun Mar 30 08:38:08 2008 - - 2 Answers - 0 Comments
A. Actually its "unearned revenue" a current liability (technically a deferral). You will receive cash for the ticket (asset) , but you have yet to deliver the service associated with the sale of the ticket so you must book an offsetting liability for the cash you have received but not earned. This is a classic example of accrual basis accounting whereby the transaction is captured - the exchange of cash is captured but an entry is also made to reflect that you have an obligation to provide a service in the future - revenue is only recognized when it is earned not when cash is received (that is cash accounting) In cash accounting you make entries when you receive or spend cash. Most companies don't use cash accounting as its not… [cont.]
Answered by Michael M - Sun Mar 30 21:02:51 2008
Can you help me answer so financial accounting questions?
Q. True Or False 1.When companies sell their receivables to other companies, the transaction is called factoring. 2.Allowance for Doubtful Accounts is a liability account. 3.When an accounts receivable that has been written off is subsequently collected, the account receivable is reinstated. 4.The accounts receivable turnover measures the length of time in days it takes to collect a receivable 5.During inflationary periods, the use of FIFO method of costing inventory will yield an inventory amount for the balance sheet approximating the current replacement cost. 6.Under the periodic inventory system, the merchandise inventory account continuously discloses the amount of inventory on hand. 7.When using the FIFO inventory costing… [cont.]
Asked by G-man55 - Sun Jun 28 21:28:22 2009 - - 2 Answers - 0 Comments
A. 1. TRUE 2. FALSE. It's a contra asset account. 3. TRUE 4. FALSE. It's the number of times in an operating cycle (normally one year) the company collects its receivable balance 5. TRUE 6. FALSE 7. FALSE 8. TRUE 9. FALSE 10. TRUE 11. TRUE 12. TRUE 13. TRUE 14. FALSE. It must be probable and easily estimated. 15. TRUE Multiple Choice 1. d. Assess risk 2. b. Direct write off method 3. a. contra asset, credit 4. d. $8,000 5. a. $4,250 6. b. FOB shipping point 7. b. Last-in, first-out 8. a. Owners equity is overstated 9. a. $92,000 10. a. $30,000 11. a. Fixed assets 12. a. $40,600 13. a. FICA tax 14. c. Period of the sale of the product
Answered by Sandy - Mon Jun 29 05:39:29 2009
Q. True Or False 1.When companies sell their receivables to other companies, the transaction is called factoring. 2.Allowance for Doubtful Accounts is a liability account. 3.When an accounts receivable that has been written off is subsequently collected, the account receivable is reinstated. 4.The accounts receivable turnover measures the length of time in days it takes to collect a receivable 5.During inflationary periods, the use of FIFO method of costing inventory will yield an inventory amount for the balance sheet approximating the current replacement cost. 6.Under the periodic inventory system, the merchandise inventory account continuously discloses the amount of inventory on hand. 7.When using the FIFO inventory costing… [cont.]
Asked by G-man55 - Sun Jun 28 21:28:22 2009 - - 2 Answers - 0 Comments
A. 1. TRUE 2. FALSE. It's a contra asset account. 3. TRUE 4. FALSE. It's the number of times in an operating cycle (normally one year) the company collects its receivable balance 5. TRUE 6. FALSE 7. FALSE 8. TRUE 9. FALSE 10. TRUE 11. TRUE 12. TRUE 13. TRUE 14. FALSE. It must be probable and easily estimated. 15. TRUE Multiple Choice 1. d. Assess risk 2. b. Direct write off method 3. a. contra asset, credit 4. d. $8,000 5. a. $4,250 6. b. FOB shipping point 7. b. Last-in, first-out 8. a. Owners equity is overstated 9. a. $92,000 10. a. $30,000 11. a. Fixed assets 12. a. $40,600 13. a. FICA tax 14. c. Period of the sale of the product
Answered by Sandy - Mon Jun 29 05:39:29 2009
whats the difference between contingent assets and contingent liabilities?? (simple wording please)?
Q. maybe provide a good definition and explanation of each? thanks!
Asked by Anonymous - Wed Nov 19 07:47:57 2008 - - 1 Answers - 0 Comments
A. Contingent refers to something that is dependent on some other event. So, a contingent liability would be one that 'might' arise, IF a particular event takes place.
Answered by gupta0209 - Wed Nov 19 09:06:24 2008
Q. maybe provide a good definition and explanation of each? thanks!
Asked by Anonymous - Wed Nov 19 07:47:57 2008 - - 1 Answers - 0 Comments
A. Contingent refers to something that is dependent on some other event. So, a contingent liability would be one that 'might' arise, IF a particular event takes place.
Answered by gupta0209 - Wed Nov 19 09:06:24 2008
Question about unique commercial truck insurance?
Q. I am a trucker who sometimes "brokers" loads onto a 3rd party truck. This creates a contingent liability exposure for me. Where can I purchase liability for this brokered load exposure? Are there any attorney's our there that know about the "Schramm Decision"?
Asked by unknown - Sun Sep 17 09:28:44 2006 - - 3 Answers - 0 Comments
A. Since you don't own the trucks, I would recommend having a hold harmless agreement with the owner operator thus transferring the liability to them. If the owner operator balks you could tell them to have the Excess Coverage for Named Insured endorsement added to their policy which should cover the contractual liability assumed by the owner operator. I would also recommend you require your hired drivers to have Bobtail Coverage. This will give them "non-trucking" liability and another layer of protection for you. Depending on the form your Trucker's Policy is written on you may have liability coverage already (I would read the Who is an Insured defintions in your policy closely to make this determination). You can add the owner operator… [cont.]
Answered by Joey H - Sun Sep 17 11:21:13 2006
Q. I am a trucker who sometimes "brokers" loads onto a 3rd party truck. This creates a contingent liability exposure for me. Where can I purchase liability for this brokered load exposure? Are there any attorney's our there that know about the "Schramm Decision"?
Asked by unknown - Sun Sep 17 09:28:44 2006 - - 3 Answers - 0 Comments
A. Since you don't own the trucks, I would recommend having a hold harmless agreement with the owner operator thus transferring the liability to them. If the owner operator balks you could tell them to have the Excess Coverage for Named Insured endorsement added to their policy which should cover the contractual liability assumed by the owner operator. I would also recommend you require your hired drivers to have Bobtail Coverage. This will give them "non-trucking" liability and another layer of protection for you. Depending on the form your Trucker's Policy is written on you may have liability coverage already (I would read the Who is an Insured defintions in your policy closely to make this determination). You can add the owner operator… [cont.]
Answered by Joey H - Sun Sep 17 11:21:13 2006
Accounting question help please?
Q. Under what conditions should a contingent liability be recorded
Asked by ameri0903 - Fri Feb 1 07:00:34 2008 - - 2 Answers - 0 Comments
A. A Contingent liability exists where there is: - a possible obligation depending on whether some uncertain future event occurs, or - a present obligation but payment is not probable or the amount cannot be measured reliably. Enterprises should not recognise contingent liabilities - but should disclose them, unless the possibility of an outflow of economic resources is remote, in which you do not need to even disclose them. [IAS 37.86] In rare cases, for example in a lawsuit, it may not be clear whether an enterprise has a present obligation. In those cases, a past event is deemed to give rise to a present obligation if, taking account of all available evidence, it is more likely than not that a present obligation exists at the balance… [cont.]
Answered by Sandy - Fri Feb 1 08:15:06 2008
Q. Under what conditions should a contingent liability be recorded
Asked by ameri0903 - Fri Feb 1 07:00:34 2008 - - 2 Answers - 0 Comments
A. A Contingent liability exists where there is: - a possible obligation depending on whether some uncertain future event occurs, or - a present obligation but payment is not probable or the amount cannot be measured reliably. Enterprises should not recognise contingent liabilities - but should disclose them, unless the possibility of an outflow of economic resources is remote, in which you do not need to even disclose them. [IAS 37.86] In rare cases, for example in a lawsuit, it may not be clear whether an enterprise has a present obligation. In those cases, a past event is deemed to give rise to a present obligation if, taking account of all available evidence, it is more likely than not that a present obligation exists at the balance… [cont.]
Answered by Sandy - Fri Feb 1 08:15:06 2008
Need help with an accounting quiz?
Q. Question 1 The term "junk bonds" describes bonds with: answers Low interest rates. Indefinite maturity dates. Low maturity values High risk Question 2 An operating lease: answers Creates an asset and a liability on the balance sheet. Is a form of off-balance sheet financing. Is always preferable to a capital lease Transfers title to the asset being leased. Question 3 A $1,000 bond that sells for 103 has a cost of: answers $1,003 $1,030 $1,300 $1,000 Question 4 On April 1, year 1, Quinn Corporation issues $40 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. Interest expense on this bond issue reported in Quinn's year 1, income statement is:… [cont.]
Asked by tiiisssk911 - Mon May 11 18:22:01 2009 - - 1 Answers - 0 Comments
Q. Question 1 The term "junk bonds" describes bonds with: answers Low interest rates. Indefinite maturity dates. Low maturity values High risk Question 2 An operating lease: answers Creates an asset and a liability on the balance sheet. Is a form of off-balance sheet financing. Is always preferable to a capital lease Transfers title to the asset being leased. Question 3 A $1,000 bond that sells for 103 has a cost of: answers $1,003 $1,030 $1,300 $1,000 Question 4 On April 1, year 1, Quinn Corporation issues $40 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. Interest expense on this bond issue reported in Quinn's year 1, income statement is:… [cont.]
Asked by tiiisssk911 - Mon May 11 18:22:01 2009 - - 1 Answers - 0 Comments
I need help to determine which ones are true and which are false? please help!!!?
Q. 3. When cities give land or buildings to a company to locate in the community, no entry is made since there is no cost to the company. 4. Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can not be changed. 5. The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the declining-balance method at twice the straight-line rate. 6. If a fixed asset with a book value of $10,000 is traded for a similar fixed asset, and a trade-in allowance of $15,000 is granted by the seller, the buyer would report a gain… [cont.]
Asked by Help me! - Fri May 15 02:35:15 2009 - - 1 Answers - 0 Comments
A. 3. When cities give land or buildings to a company to locate in the community, no entry is made since there is no cost to the company FALSE. Donated assets must be recognised and recorded. 4. Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can not be changed. FALSE. A company can always change the accounting principle or accounting estimate if it better reflects the economic realities of the environment. 5. The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the declining-balance method at twice the straight-li [cont.]
Answered by Sandy - Fri May 15 09:17:37 2009
Q. 3. When cities give land or buildings to a company to locate in the community, no entry is made since there is no cost to the company. 4. Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can not be changed. 5. The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the declining-balance method at twice the straight-line rate. 6. If a fixed asset with a book value of $10,000 is traded for a similar fixed asset, and a trade-in allowance of $15,000 is granted by the seller, the buyer would report a gain… [cont.]
Asked by Help me! - Fri May 15 02:35:15 2009 - - 1 Answers - 0 Comments
A. 3. When cities give land or buildings to a company to locate in the community, no entry is made since there is no cost to the company FALSE. Donated assets must be recognised and recorded. 4. Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can not be changed. FALSE. A company can always change the accounting principle or accounting estimate if it better reflects the economic realities of the environment. 5. The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the declining-balance method at twice the straight-li [cont.]
Answered by Sandy - Fri May 15 09:17:37 2009
The following Trial balance was extracted from the books of Gulzar Traders on 31st?
Q. The following Trial balance was extracted from the books of Gulzar Traders on 31st December 2007. You are required to prepare Income Statement for the year ended 31st December, 2007 and a Balance Sheet as at that date: Debit balance Rs. Credit balance Rs. Stock on (1st January, 2007) Purchases Bills Receivable Cash in hand Returns Furniture Office Expense Bad Debts Drawings Sundry Debtors Investment Insurance Telephone Expenses Total 13,000 49,000 12,000 6,000 5,000 2,400 7,800 2,000 5,600 20,000 16,000 2,000 2,200 143,000 Bad Debts provision Discount Received … [cont.]
Asked by usman g - Sun Feb 10 11:58:26 2008 - - 1 Answers - 0 Comments
A. This question is incomprehensible. What's all this
Answered by Sandy - Mon Feb 11 00:18:57 2008
Q. The following Trial balance was extracted from the books of Gulzar Traders on 31st December 2007. You are required to prepare Income Statement for the year ended 31st December, 2007 and a Balance Sheet as at that date: Debit balance Rs. Credit balance Rs. Stock on (1st January, 2007) Purchases Bills Receivable Cash in hand Returns Furniture Office Expense Bad Debts Drawings Sundry Debtors Investment Insurance Telephone Expenses Total 13,000 49,000 12,000 6,000 5,000 2,400 7,800 2,000 5,600 20,000 16,000 2,000 2,200 143,000 Bad Debts provision Discount Received … [cont.]
Asked by usman g - Sun Feb 10 11:58:26 2008 - - 1 Answers - 0 Comments
A. This question is incomprehensible. What's all this
Answered by Sandy - Mon Feb 11 00:18:57 2008
Current assets examination question?
Q. The following amounts were taken from the unadjusted trial balance of LMN Company on December 31, 2008 (in thousands of US$): Accounts payable, 877; Accounts receivable, 808; Accrued expenses, 340; Accrued interest payable, 30; Allowance for doubtful accounts, 15; Cash and cash equivalents, 209; Dividends payable, 25; Income tax payable, 52; Trading securities, 143; Notes receivable, 100; Merchandise inventory, 796; Bonds payable 6% ($50,000 due on September 30 annually), 500; Prepaid expenses, 10; Retained earnings, 40; Contingent liabilities, 527 Additional information: The accounts receivable balance is net of customers' deposit of $40,000. The balance sheet notes receivable includes $80,000 of note discounted for which the company is… [cont.]
Asked by Lorelie - Fri Sep 4 05:28:18 2009 - - 1 Answers - 0 Comments
A. To be included in current assets on December 31, 2008: 01) $808,000 accounts receivable 02) - $15,000 allowance for doubtful accounts 03) $209,000 cash and cash equivalents 04) $143,000 trading securities 05) $100,000 notes receivable 06) $796,000 merchandise inventory (disregard changes) 07) $10,000 prepaid expenses 08) $40,000 add back customers' deposit as current liability 09) - $80,000 note receivable discounted xx) $2,011,000 total adjusted current assets on December 31, 2008 Answer: a. $2,011,000
Answered by Jun Agruda - Fri Sep 4 06:55:46 2009
Q. The following amounts were taken from the unadjusted trial balance of LMN Company on December 31, 2008 (in thousands of US$): Accounts payable, 877; Accounts receivable, 808; Accrued expenses, 340; Accrued interest payable, 30; Allowance for doubtful accounts, 15; Cash and cash equivalents, 209; Dividends payable, 25; Income tax payable, 52; Trading securities, 143; Notes receivable, 100; Merchandise inventory, 796; Bonds payable 6% ($50,000 due on September 30 annually), 500; Prepaid expenses, 10; Retained earnings, 40; Contingent liabilities, 527 Additional information: The accounts receivable balance is net of customers' deposit of $40,000. The balance sheet notes receivable includes $80,000 of note discounted for which the company is… [cont.]
Asked by Lorelie - Fri Sep 4 05:28:18 2009 - - 1 Answers - 0 Comments
A. To be included in current assets on December 31, 2008: 01) $808,000 accounts receivable 02) - $15,000 allowance for doubtful accounts 03) $209,000 cash and cash equivalents 04) $143,000 trading securities 05) $100,000 notes receivable 06) $796,000 merchandise inventory (disregard changes) 07) $10,000 prepaid expenses 08) $40,000 add back customers' deposit as current liability 09) - $80,000 note receivable discounted xx) $2,011,000 total adjusted current assets on December 31, 2008 Answer: a. $2,011,000
Answered by Jun Agruda - Fri Sep 4 06:55:46 2009
From Yahoo Answer Search: 'contingent liability'
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