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Study with Quizlet and memorize flashcards containing terms like Liabilities are recognized in exchange for a. borrowing money b. services c. goods d. all of these, When reporting liabilities on a balance sheet, in theory, what measurement should be used? a. Present value of the present outflow b. Present value of the future outflow c. Future value of the present outflow d. Future value of the ...
Which of the following is not a current liability? A. unearned revenue. B. accounts payable. C. accrued liabilities. D. prepaid expenses
T/F: contingent liabilities must be recorded in the accounting records if they are probable and the amount can be reasonably estimated
An obligation whose amount, timing, or recipient depends on future events. current liabilities. Obligations that require the firm to pay cash or another current asset, create a new liability, or provide goods or services within the longer of 1 year or one operating cycle. liabilities.
T/F: liabilities always identify the entity to which they are being paid
any debt that we can reasonably expect to be satisfied or paid by existing current assets OR paid within one year or operating cycle
T/F: although the exact AMOUNT and TIMING of future payments are usually known, for some liabilities they may not be
T/F: contingent liabilities must be recorded in the accounting records if they are probable and the amount can be reasonably estimated
An obligation whose amount, timing, or recipient depends on future events. current liabilities. Obligations that require the firm to pay cash or another current asset, create a new liability, or provide goods or services within the longer of 1 year or one operating cycle. liabilities.
T/F: liabilities always identify the entity to which they are being paid
any debt that we can reasonably expect to be satisfied or paid by existing current assets OR paid within one year or operating cycle
T/F: although the exact AMOUNT and TIMING of future payments are usually known, for some liabilities they may not be