Question : 71. The FASB and the IASB reconsidering the role of uncertainty, : 1230489

71. The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. IFRS imply a minimum probability level of  greater than _____ percent.  A. 50B. 60C. 70D. 80E. 90

72. The criteria for recognition of a liability include which of the following?   A. The obligation represents a present obligation, not a potential future commitment or intent.B. The obligation exists as a result of a past transaction or exchange, called the obligating event. C. The obligation requires the probable future sacrifice of an economic resource that the firm has little or no discretion to avoid. D. The obligation has a relevant measurement attribute that the firm can quantify with sufficient reliability. E. all of the above

73. The criteria for recognition of a liability does not include which of the following?   A. The obligation represents a present obligation.B. The obligation exists as a result of a past transaction or exchange, called the obligating event. C. The obligation requires the probable future sacrifice of an economic resource that the firm has little or no discretion to avoid. D. The obligation has a relevant measurement attribute that the firm can quantify with sufficient reliability. E. The obligation represents a potential future commitment or intent.

74. Equity, or shareholders’ equity for a corporation,  A. is the residual interest of owners in the assets of an entity, after subtracting liabilities. B. includes assets exchanged by owners in return for an ownership interest. C. includes net assets generated by earnings activities in excess of net assets distributed to owners as dividends. D. is reduced by repurchases by the firm of its ownership interests.E. all of the above.

75. Which of the following is not true regarding shareholders’ equity for a corporation? A. Shareholders’ equity is the residual interest of owners in the assets of an entity, after subtracting liabilities. B. Shareholders’ equity includes assets exchanged by owners in return for an ownership interest. C. Shareholders’ equity includes net assets generated by earnings activities in excess of net assets distributed to owners as dividends. D. Shareholders’ equity is increased by repurchases by the firm of its ownership interests.E. all of the above.

76. Firms recognize revenue, or income, under the following condition(s) A. completion of the earnings process, only. B. receipt of assets from the customer, only.C. completion of the earnings process and receipt of assets from the customer.D. receipt of cash from the customer, onlyE. commencement of the earnings process, only.

77. If firms expect to receive cash more than one year after the time of recognizing revenue, they measure revenues at the A. future value of the amount of cash they expect to receive. B. present value of the amount of cash they expect to receive. C. fair value.D. aggregate total of the amount of cash they expect to receive. E. net realizable value.

78. Which of the following is not true? A. Gains (losses) are increases (decreases) in assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B.  Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled. C. Gains and losses may arise from the remeasurement of assets and liabilities. D. Firms realize gains and losses when they sell or exchange assets or settle liabilities in market transactions. E. Firms recognize gains and losses when those items enter the measurement of net income or other comprehensive income.

79. Which of the following is not true? A. Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B. Firms usually report gains and losses from sales of assets or settlements of liabilities at the present value of future cash flows; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled. C. Gains and losses may arise from the remeasurement of assets and liabilities. D. Firms realize gains and losses when they sell or exchange assets or settle liabilities in market transactions. E. Firms recognize gains and losses when those items enter the measurement of net income or other comprehensive income.

80. Which of the following is not true? A. Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B. Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled.C. Gains and losses never arise from the remeasurement of assets and liabilities. D. Firms realize gains and losses when they sell or exchange assets or settle liabilities in market transactions. E. Firms recognize gains and losses when those items enter the measurement of net income or other comprehensive income.