Which Statement Regarding Commitments and Contingencies Is False

question 6

Multiple Choice

Which statement regarding commitments and contingencies is false?

• A)U.S.GAAP record commitments since they have a legal basis
• B)Under IFRS,the purchase agreements are recognized when an entity has a demonstrable commitment for a future payment or transfer of assets
• C)Under U.S.GAAP,contingent assets and liabilities are recognized if they are probable and can be estimated.
• D)Under IFRS,there must be a present obligation that arises from past events and fair value must be determinable

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Definitions:

Bowling Lane

The playing surface in the sport of bowling, which is a long, narrow, flat lane where the ball is thrown to hit the pins at the other end.

Bowling Team

A group of individuals who participate together in the sport of bowling, often competing against other teams in leagues or tournaments.

Figure-Ground

The organization of the visual field into objects (the figures) that stand out from their surroundings (the ground).

Visual Cliff

A laboratory device for testing depth perception in infants and young animals.