Quiz 13.15 – T/F Threshold of Probability for “Probable” under IFRS
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
In IFRS, “probable” denotes a level of likelihood higher than 50%.
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.
The Medicare portion of the FICA tax has no wage base limit, unlike the Social Security tax.
Employers are required to deduct State and Federal Unemployment Taxes (SUTA and FUTA) from their employees’ salaries.
Which option represents the most common type of liability?
Which definition provides the best description of a current liability?
Which option is NOT classified as a liability?
According to GAAP, what concept supports the practice of recording current liabilities at the amount expected to be paid instead of their present value?