Contingent Liabilities Are ________ Under GAAP, and ________ Under IFRS

question 14

Multiple Choice

Contingent liabilities are ________ under GAAP, and ________ under IFRS I. Recorded if probable
II. Recorded if possible
III. Recorded if reasonably estimated

• A)GAAP I and II; IFRS I or II
• B)GAAP I or III; IFRS I and II
• C)GAAP I; IFRS I and III
• D)GAAP I and III; IFRS I

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Definitions:

Expenses

The cost of assets consumed or services used in the process of earning revenue.

Depreciation Expense

Depreciation Expense is an accounting method of allocating the cost of a tangible asset over its useful life.

Accounts Payable

Money owed by a business to its suppliers or vendors for goods and services purchased on credit.

Operating Activities

Activities that relate to the principal revenue-producing activities of an entity and other activities that are not investing or financing activities.