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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