FA

• under these covenants, if certain conditions relating to the borrower's financial situation are breached, the liability becomes noncurrent

  FALSE
• Accrued Revenue is income already received but not yet earned


  FALSE deferred or unearned
• When an entity has the option to refinance for repayment two years later, the related liability is recognized as noncurrent

  TRUE
• Cash received in advance for services to be performed are initially recorded as liability

  TRUE
• Long term liabilities are measured at Face Value

  FALSE - amortized cost or at fair value
• A liability exists when there is an obligation to pay for goods an entity expects to order from supplier next year

  FALSE
• Recording is required for 


  loss contingencies that are probable and can be reliably measured
• Advance payment from customers represent

  liabilities until the product is provided
• Contingent assets are usually recognized when occurrence is probable

  FALSE
• A provision is an obligation of uncertain amount or uncertain thing


  TRUE
• The entry to record to estimate the amount of premium liability includes a debit to estimated premium liability

  FALSE - CREDIT
• Cash received in advance for services to be performed are initially recorded as liability

  TRUE - unearned revenue
• a provision is a liability of uncertain timing and which cannot be measured reliably

  FALSE
• A contingent asset is usually recognized when probable and measurable

  FALSE
• IFRS 16 provides that the lease payments shall be discounted using implicit interest rate of the lessee

  TRUE
• IFRS 16 provides that at the commencement date, the lessee shall recognize a property and lease liability

  FALSE - PRPERTY--Right of use
• A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset

  TRUE
• IFRS 16 provides that the lessor has the option to use either operating lease of finance lease


  FALSE -depends on the indication
• The lessee shall depreciate the right of use asset over the shorter period between useful life of underlying asset and lease term when there is transfer of ownership

  FALSE
• if the FVPA is more than PBO the plan is underfunded and therefore there is an accrued benefit cost, a noncurrent liability

  FALSE
• In a defined benefit plan, an employee is guaranteed a specific or definite amount of benefit which is usually related to his salary and years

  TRUE
• The remeasurements and servic cost are included and fully recognized in other comprehensive income

  FALSE
• The PBO appears in the FInancial statements of the entity as a noncurrent liability

  FALSE
• A defined contribution plan is a postemployment benefit plan under which an entity pays fixed contributions into a separate enntity knows as fund

  TRUE
• The current tax payable is based on accounting income


  false
• Deferred tax liability and deferred tax asset should be reported as current when it will reverse in the next period

  FALSE
• The excess of depreciation for tax basis over depreciation for book basis will result to a deferred tax liability

  A
• Premiums on life insurance will result in temporary difference in current period

  FALSE
• Unamortized bond discount should be reported as

  Direct deduction from face amount of bond
• Bonds payable is initially measured at

  Fair value minus transaction cost
• The accrued interest is computed using the effective rate

  FALSE
• The accrued interest does not affect the amount or cash received by the issuer

  FALSE
• The accrued interest is recorded as income

  FALSE
• For a liability to exist a past transaction or event must have occured

  TRUE