Correctly match the accounting treatment with the specific scenario described. 1. Loss is probable and not reasonably estimable.
(a) Disclosure note only.
(b) Liability is accrued and related information disclosed.
(b) No disclosure note needed.
2. Loss is remote
(a) Disclosure note only.
(b) Liability is accrued and related information disclosed.
(b) No disclosure note needed.
3. Loss is probable and reasonably estimable.
(a) Disclosure note only.
(b) Liability is accrued and related information disclosed.
(b) No disclosure note needed.
4. Loss is reasonably possible and not reasonably estimable.
(a) Disclosure note only.
(b) Liability is accrued and related information disclosed.
(b) No disclosure note needed.

1. a

2. a

3. b

4. a

Explanation:

A liability is a present obligation of the entity arising as a result of past event, the settlement of which will result in the outflow of economic benefits. It is presented in the Statement of Financial Position

A provision is a liability of uncertain timing and amount. It is also presented in the statement of Financial Position and disclosed.

A contingent liability is an obligation that arises from past event and whose existence will be confirmed by the occurrence or non-occurrence of one or uncertain future events, not wholly within the control of the entity. Contingent liabilities are not recorded in Financial Statements but disclosed in the notes to financial statements.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'