What is a guarantee? Describe the nature of the guarantee described in Note 41. Does the guarantee meet the definition of a liability (see Chapter 2). Under what circum stances are guarantees reported as liabilities? If a guarantee isn't reported as a liability, why is it reported in the notes to the financial statements? Is information about guarantees useful to stakeholders? Explain.
Answer to relevant QuestionsWhat are subsequent events and why are they reported in financial statements? Describe the subsequent event Canadian Tire reported in its 2011 statements. What is the relevance of this event to stakeholders? Do you think the ...What does it mean when an entity uses leverage to finance itself? What are the advantages and disadvantages of using leverage?What is a limited partnership? What is the difference between limited partners and general partners? Why must a limited partnership have at least one general partner?Car prices tend to increase over time. One car manufacturer has offered students the opportunity to lock in the price of a new car for when they graduate. By paying $500 today, a student can purchase any car made by the ...Why might a loan agreement limit or prevent the payment of dividends by the borrower?
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