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Commitments for things like purchasing property, plant and equipment or future lease payments are DISCLOSED in the notes to the financial statements only. Select one: True False Under ASPE, a contingent liability is recognized if a. an asset may have been impaired. b. the amount of the loss can be reasonably estimated and it is likely that an asset has been impaired or a liability incurred as of the financial statement date. c. the amount to settle the contingency is certain. d. the amount of the loss cannot be estimated BUT it is certain an asset has been impaired. If a warranty comes with the product sold, warranty expense is recognized at the time ACTUAL warranty costs are incurred (in the future). Select one: True False Which of the following statements is true? a. Warranty liability is recognized only if a warranty is sold separately from the product sale. b. A warranty liability is based on ESTIMATED costs. c. Warranty liability is determined from the sale price of the warranty. d. A warranty liability is based on ACTUAL costs. Clear my choice If a warranty is sold separately from the product sale, warranty expense is recognized at the time ACTUAL warranty costs are incurred (in the future). Select one: True False