9) Which of the following is correct about a "liability" under IFRS Framework?
A) a future obligation arising from current events, the settlement of which is expected to result in an outflow of resources
B) a present obligation arising from current events, the settlement of which is expected to result in an outflow of resources
C) a future obligation arising from past events, the settlement of which is expected to result in an outflow of resources
D) a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources
10) Which statement is correct under the IFRS definition for a "liability"?
A) The obligating event must be probable before the liability can be recognized.
B) The obligating event must be virtually certain before the liability can be recognized.
C) A reliable measure of the obligation must exist before the liability can be recognized.
D) A precise measure of the obligation must exist before the liability can be recognized.
11) Which statement is
not
correct under the IFRS Framework?
A) A reliable estimate for an asset is presumed to exist.
B) A provision exists if the timing of payment is uncertain.
C) A provision exists if the amount of payment is uncertain.
D) A reliable estimate for a liability is presumed to exist.
12) Which statement is correct about financial and non-financial liabilities?
A) A non-financial liability is a contractual obligation to deliver cash to another party.
B) A non-financial liability does not meet all of the criteria for a "liability."
C) The two liabilities are valued differently for financial reporting purposes.
D) A non-financial liability is measured at fair value rather than amortized cost.
13) Which is
not
an example of a non-financial liability?
A) Warranty liability.
B) Bank loan.
C) Income taxes payable.
D) Deferred revenue.
14) Which is
not
an example of a financial liability?
A) Payment to supplier for raw material received.
B) Obligation to repay a US dollar bank loan.
C) Obligation under a finance lease.
D) Obligation under a customer loyalty program.
15) Which statement is correct?
A) HST payable is a financial liability.
B) Bank overdraft is a non-financial liability.
C) Unearned revenue is a non-financial liability.
D) Unearned subscriptions are a financial liability.
16) Which statement is
not
correct?
A) A bank loan due in 5 years is a non-financial liability.
B) Bonds payable are financial liabilities.
C) Sales taxes payable are non-financial liabilities.
D) A bank loan due in 90 days is a financial liability.
17) Which statement about liabilities is
not
correct?
A) Current liabilities are those that can be settled within one year.
B) Current liabilities are those that can be settled within one operating cycle.
C) Current liabilities are normally presented together with non-current liabilities.
D) Certain held for trading liabilities can also be reported as current liabilities.
18) Which is
not
a current liability?
A) Accounts payable due in 120 days.
B) Bank loan due in three years that is in default.
C) Bonds payable maturing in five years.
D) Certain held for trading liabilities.