Question
When must a liability be accrued rather than only disclosed as a contingency?
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Answer
When it is probable and reasonably estimable.
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Question
When is unearned revenue a liability?
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Answer
Until the performance obligation is satisfied.
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Question
What makes an expense an accrued liability at period-end?
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Answer
It has been incurred but not yet paid.
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Question
What is the key cutoff adjustment for FOB shipping point inventory in transit?
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Answer
Increase both inventory and accounts payable.
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