6. True or False: If the going concern assumptions is no longer appropriate the entre financial statements

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Question:

6. True or False: If the going concern assumptions is no longer appropriate the entre financial statements will need revision.

a. TRUE

b. FALSE

5. True or False: A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. A provision is a liability of uncertain timing or amount.

a. TRUE

b. FALSE

4. True or False: Accrued expenses can be recognised as a provision.

a. TRUE

b. FALSE

3. True or False: A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

a. TRUE

b. FALSE

2. True or False: An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

a. TRUE

b. FALSE

1. True or False: Provisions shall not be recognised for future operating losses

a. TRUE

b. FALSE