expense and liability, respectively, shown on the 2007 financial statements dated December 31? 49) A contingency can be accrued when 50) Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? 51) Mark Ward is a farmer who owns land which borders on the rightof-way of the Northern Railroad. On August 10, 2007, due to the admitted negligence of the Railroad, hay on the farm was set on fire and burned. Ward had had a dispute with the Railroad for several years concerning the ownership of a small parcel of land. The representative of the Railroad has offered to assign any rights which the Railroad may have in the land to Ward in exchange for a release of his right to reimbursement for the loss he has sustained from the fire. Ward appears inclined to accept the Railroad ' s offer. The Railroad ' s 2007 financial statements should include the following related to the incident: 52) An example of an item which is NOT a liability is 53) The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the 54) Bonds for which the owners ' names are NOT registered with the issuing corporation are called 55) Minimum lease payments may include a 56) What impact does a bargain purchase option have on the present value of the minimum lease payments computed by the lessee? 57) Which of the following is a correct statement of one of the capitalization criteria? 58) In order to properly record a direct-financing lease, the lessor needs to know how to calculate the lease receivable. The lease receivable in a direct-financing lease is best defined as 59) In the earlier years of a lease, from the lessee ' s perspective, the use of the 60) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income
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