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If an inflow of economic benefits is probable then a contingent asset is disclosed
- a)In the financial statements.
- b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).
- c)In the cash flow statement.
- d)None of the above.
Correct answer is option 'B'. Can you explain this answer?
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If an inflow of economic benefits is probable then a contingent asset ...
Explanation:
Contingent assets refer to possible assets that arise from past events but their existence is not certain. They may become actual assets only if a future event occurs or certain conditions are met. If it is probable that an inflow of economic benefits will be received, then the contingent asset should be disclosed in the report of the approving authority.
The approving authority is responsible for authorizing the financial statements of the entity. In the case of a company, the approving authority is the Board of Directors, while in the case of any other enterprise, it is the corresponding approving authority. The approving authority is responsible for ensuring that the financial statements are prepared in accordance with the applicable accounting standards and that all relevant information is disclosed.
The disclosure of contingent assets in the report of the approving authority is important for stakeholders to have a complete understanding of the financial position of the entity. This information enables stakeholders to make informed decisions about investing in the entity or engaging in business transactions with the entity.
In conclusion, the disclosure of contingent assets in the report of the approving authority is necessary if an inflow of economic benefits is probable. It is the responsibility of the approving authority to ensure that all relevant information is disclosed in the financial statements.
Contingent assets refer to possible assets that arise from past events but their existence is not certain. They may become actual assets only if a future event occurs or certain conditions are met. If it is probable that an inflow of economic benefits will be received, then the contingent asset should be disclosed in the report of the approving authority.
The approving authority is responsible for authorizing the financial statements of the entity. In the case of a company, the approving authority is the Board of Directors, while in the case of any other enterprise, it is the corresponding approving authority. The approving authority is responsible for ensuring that the financial statements are prepared in accordance with the applicable accounting standards and that all relevant information is disclosed.
The disclosure of contingent assets in the report of the approving authority is important for stakeholders to have a complete understanding of the financial position of the entity. This information enables stakeholders to make informed decisions about investing in the entity or engaging in business transactions with the entity.
In conclusion, the disclosure of contingent assets in the report of the approving authority is necessary if an inflow of economic benefits is probable. It is the responsibility of the approving authority to ensure that all relevant information is disclosed in the financial statements.
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If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer?
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If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer?.
If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If an inflow of economic benefits is probable then a contingent asset is discloseda)In the financial statements.b)In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).c)In the cash flow statement.d)None of the above.Correct answer is option 'B'. Can you explain this answer?.
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