Reference no: EM132765987
Problem 1: Which of the following statements is true concerning contingent liabilities?
a. Such liabilities should include obligations of known existence but of unknown amount.
b. If the definite amount is involved, it is not a contingent liability.
c. Such liabilities are generally reported and totaled with other liabilities to make up the liability section of most balance sheets.
d. Such liabilities should include obligations known in amount but unknown in existence.
Problem 2: Which of the following statements is incorrect?
a. Stated value is similar to par value of stock.
b. Issued shares of stocks include those that have at one time been sold to the public and which have not been subsequently retired.
c. Treasury shares may be reissued as dividends, in which case the cost of the shares should be charged to retained earnings.
d. If an entity's capital stock is retired, the "share capital" account is reduced by its par value, the number of shares is reduced by the stock retired and the treasury stock is credited at cost.
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How much of the note payable is classified as current
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What is the amount of noncurrent asset
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How happy pets company would use during the conduct
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What effect would have on the carrying value of investment
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Which statements is true concerning contingent liabilities
: Which statements is true concerning contingent liabilities? Such liabilities are generally reported and totaled with other liabilities to make up the liability
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Which straight-line method of depreciation is not appropriat
: Which straight-line method of depreciation is not appropriate for? Equipment on which the amount of maintenance and repairs increase substantially with age.
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Which is not one of the essential characteristics for item
: Which is not one of the essential characteristics for an item to be reported as a liability on the balance sheet? it is present obligation of particular entity
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Which adjusting entries may a reversing entry be used
: Which adjusting entries may a reversing entry be used? debit depreciation expense, credit accumulated depreciation. / debit interest receivable, credit interest
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Which a liability shall be recognized
: Which a liability shall be recognized? if the entity incurs a present obligation with improbable outflow of resources embodying economic benefits
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