1. Which does not represent a financial liability

Multiple Choice

• Cash dividends payable are dividends declared are reported as a current liability if it is payable within the coming year.

• Dividends in arrears for preferred shares.

• Bonus that depends on earnings of the current year.

• Payroll taxes and withholdings.

2. A financial liability is classified as FVTPL when:

Multiple Choice

• The company wants to avoid an accounting mismatch.

• The company records the liability at amortized cost.

• The financial liability is recorded as current on the statement of financial position.

• The company expects to settle the liability at some point in the future.

3. When must a loan be reported as 'current'?

Multiple Choice

• If due 18 months after year-end.

• A long term loan that is in covenant breach and an agreement is reached after year-end.

• A long term loan that is in covenant breach and an agreement is reached before year-end.

• A long-term debt with no stated maturity date.