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- In applying the current financial resources measurement focus, when are liabilities recognized in fund financial statements?Indicate whether each of the following assets and liabilities typically should be classified as current or long-term:On a statement of financial affairs, how are liabilities classified?a. Current and noncurrent.b. Secured and unsecured.c. Monetary and nonmonetary.d. Historic and futuristic.
- Why are payments received from customers in advance, for either services to be performed and/or for goods to be delivered, classified as liabilities upon the receipt of the funds?Distinguish between financial liabilities and non-financial liabilities.Which of the following information should be disclosed in the summary of significant accounting policies? Adequacy of pension plan assets relative to vested benefits. Refinancing of debt subsequent to the balance sheet date. Criteria for determining which investments are treated as cash equivalents. Guarantees of indebtedness of others.
- Choose the correct. On a statement of financial affairs, how are liabilities classified?a. Current and noncurrent.b. Secured and unsecured.c. Monetary and nonmonetary.d. Historic and futuristic.Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. InvestmentDefine current assets. What basis is used for ordering individual items within the current assets section? How do current liabilities differ from long-term liabilities?
- Potential liabilities that depend on future events arising out of past events are calleda. contingent liabilities.b. estimated liabilities.c. current liabilities.d. long-term liabilities.Identify how life insurance fund appears in the financial statements? a. The debit side of the revenue account b. The credit side of the revenue account c. The liability side of the balance sheet d. The asset side of the balance sheetWhat are some examples of special issues in accounting for long-term assets? How are they handled?