Which of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? a. Assets reserved for fully secured credits b. Assets reserved for partially secured credits c. Unsecured portion of partially secured liabilities d. Assets not used as collateral for any liability

Which of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? a. Assets reserved for fully secured credits b. Assets reserved for partially secured credits c. Unsecured portion of partially secured liabilities d. Assets not used as collateral for any liability

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 7CYBK

See similar textbooks

Similar questions

6 Which of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? Group of answer choices Assets reserved for partially secured credits Assets not used as collateral for any liability Assets reserved for fully secured credits Unsecured portion of partially secured liabilities
What is the largest estimated possible loss that could arise in a safe payment schedule? no need to explain a. Book value of recorded assets b. Book value of recorded non cash assets c. Fair value of recorded assets d. Any of the above
A statement of affairs measures a deficiency – traceable to unsecured creditors without priority – as the difference between the estimated net realizable value of the assets and the amount due those creditors True or False
41.Which of the following shall be taken into consideration when measuring and recognizing impairment loss on receivables?A. Past experiences on the collectability of the receivablesB. Present condition of the debtor, including the present economic environmentC. Future expectations based on information that are available without undue cost and effort a. A, B and C b. A and B only c. A only d. B only
Which of the following approaches is used to determine the recognition of an impairment loss of financial assets? Select the best answer. a. O An approach that reflects the losses expected over the contractual life of the asset b. A loan is impaired if it is more likely than not that a creditor will be unable to collect all amounts due. c. A dual-measurement expected credit loss approach that is based on a financial asset's credit risk at inception and changes in credit risk from inception, as well as the applicability of certain practical expedients d. O Present value of contractual cash flows approach
The net free assets in the statement of affairs represent an amount that is expected to be available to: a. Total Unsecured liabilities b. Unsecured creditors without priority only c. Unsecured creditors with priority only d. The secured portion of partially secured liabilities
A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
Which of the following situations does not base an accounting measure on a present value? Prepaid insurance , leases, pensions or sinking funds
how much is to be paid to unsecured liabilities with priority creditors, fully creditors, partially secured creditors and unsecured liability without priority creditors? liabilities with priority creditors fully secured creditors partially secured creditors unsecured liability without priority creditors
Liabilities that are not secured by specific assets are called: Multiple Choice O O O General credit obligations. Accrued liabilities. Indentures. Debt contracts.
2. Which of the following statement is correct about the statement of affairs? I. Net free assets are the excess of liquidation value of assets pledged to fully secured creditors over the amount of fully secured liabilities plus free assets less unsecured liabilities with priority. II. The estimated deficiency to unsecured creditors is total unsecured liabilities less total Net free assets III.Total unsecured liabilities includes unsecured liability with priority [A] I only [B] I and II only [C] II and III only [D] I, II and III 3. S1: For a joint venture, rights pertains to the rights and obligations associated with individual assets and liabilities, whereas with a joint the right operation, the rights and obligations pertains to the net assets. S2: Where the joint operators have designed the joint arrangement so that its activities primarily aim to provide the parties with an output it will be classified as joint venture. [A]Both statements are correct [B]Both statements are…
18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk of property loss by fire or other hazardsb. guarantees of indebtedness of othersc. noncollectibility of receivablesd. agreements to repurchase receivables that have been sold