Intermediate Accounting, Vol. 2, 5e (Lo/Fisher) Chapter 11 Current Liabilities, Non-Financial Liabilities, and Contingencies Learning Objective 1 Describe the nature of liabilities and differentiate between financial and non-financial liabilities. 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, Right-of-use obligation. C) Accounts payable, Warranties 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 1 Copyright © 2023 Pearson Canada Inc.
Test Bank for Intermediate Accounting, Volume 2, 4th Edition By Kin Lo, George Fisher
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