Date Name Class ENAMM 19. A remotely possible loss from a lawsuit is not reporte

Question

Date Name Class ENAMM 19. A remotely possible loss from a lawsuit is not reported on the balance sheet as a current liability a. True b. False 20. Accrued wages is a current liability a. True b. False 21. A contingent liability is recorded if it is probable and can be reasonably estimated a. True b. False 22. Contingent assets may be disclosed in the notes if probable and r easonably estimable a. Irue b. False 23. Income taxes payable is a current liability a. True b. False 24. Curtain Corp. stands to receive a sufficient cash settlement from a lawsuit. Curtain needs to record this on its accounting records. a. True b. False 25. Income taxes payable are recognized as an expense once they are paid to the respective government or taxin authority a. True b. False

Explanation / Answer

19. Outcome of a lawsuit results in loss is remote therefore no provision is required. It is required to be disclosed as a contingent liability by way of a note to the balace sheet.

Answer True

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