Quiz 13.113 – Terms and Phrases
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Match each phrase with its corresponding terminology, provision, mid-point of the range, etc…
Match each phrase with its corresponding terminology, provision, mid-point of the range, etc…
Match each phrase with its corresponding terminology, disclosure note only, not reported, etc…
Identify the way each item in the list should be shown on the December 31, 2021 balance sheet.
A disclosure note must be included for material loss contingencies that have a reasonably possible chance of occurring.
Accrue liability for unasserted claims if reasonably possible to be asserted.
Don’t accrue asset for gain contingency unless its realization is probable.
In IFRS, “probable” denotes a level of likelihood higher than 50%.
According to Statement of Financial Accounting Concepts No. 6, “Elements of Financial Statements”, what are the main elements that constitute the official definition of liability?
IFRS requires accruing the midpoint of a range of equally likely payments if a contingent liability will probably result in a future payment.
Under accounting standards, it is necessary to record the cost of promotional offers as expenses in the period when customers redeem them.