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Intermediate Accounting, Vol. 2, 5e (Lo/Fisher)
Chapter 11 Current Liabilities and
... [Show More] Contingencies
Learning Objective 1
1) Which of the following characteristic is required for a liability under IFRS Framework?
A) A past obligation.
B) A present obligation.
C) An unknown obligation.
D) A future obligation.
Answer: B
Diff: 1 Type: MC
Skill: Concept
Objective: 11.1 Describe the nature of liabilities and differentiate between financial and non-financial
liabilities.
2) Which of the following characteristic is required for a liability under IFRS Framework?
A) Arises from a past event.
B) Arises from a non-financial transaction.
C) Arises from a future transaction.
D) Arises from a forecasted transaction.
Answer: A
Diff: 1 Type: MC
Skill: Concept
Objective: 11.1 Describe the nature of liabilities and differentiate between financial and non-financial
liabilities.
3) Which of the following characteristic is required for a "liability" under IFRS Framework?
A) Expected to result in the inflow of economic benefits.
B) Expected to result in the inflow of economic benefits that are measurable.
C) Expected to result in the outflow of resources embodying economic benefits.
D) Expected to result in the outflow of economic benefits that are virtually certain.
Answer: C
Diff: 1 Type: MC
Skill: Concept
Objective: 11.1 Describe the nature of liabilities and differentiate between financial and non-financial
liabilities.
4) Which of the following groups includes only financial liabilities?
A) Accounts payable, Notes payable, Warranties payable.
B) Bank loan, Bonds payable, Finance lease obligation.
C) Accounts payable, HST payable, Bonds payable.
D) Bank overdraft, USD bank loan, Obligation under customer loyalty plan.
Answer: B
Diff: 1 Type: MC
Skill: Concept
Objective: 11.1 Describe the nature of liabilities and differentiate between financial and non-financial
liabilities [Show Less]