.

St. Vincen t de Ferrer College of Camarin Inc.

1st Semester 2020-2021
Intermediate Accounting 2
Prof. Mario U. Madrid, CPA/MBA
Assignment no. 8

Answer 15 questions on Chapt 4 -Provision and Contingent Liab

1 Explain the meaning of a provision.

2 What are the three conditions necessary for the recognition a p

liability?

3 What is a legal obligation?

4 What is a constructive obligation?

5 What is an obligating event?

6 Explain the terms probable, possible and remote in relation to a

7 What is the measurement of a provision?

8 Explain a restructuring provision

9 Define a contingent liability.

10 Distinguish a contingent liability from a provision.

11 Explain the treatment of a contingent liability.

12 Define a contingent asset.

13 Explain the treatment of a contingent asset.

14 What is a decommissioning liability.

15 Explain the treatment of a decommissioning liability.
e of Camarin Inc.

CPA/MBA

and Contingent Liability on page 114:

the recognition a provision as a

mote in relation to a provision.

g liability.

xx Per analysis
xx Per book