Robo Corporation entered into noncancelable, long-term material contracts with suppliers for the purchase of raw materials beginning in the calendar Year 4 . These contracts amounted to $500,000 at December 31, Year 4, relating to raw materials with a market price of $575,000 . This amount was considered material for Robo. (CMA adapted, Dec 95 #17) Refer to the Robo Corporation example. Assume
the goods were received and the market price of the raw materials amounts to $450,000 . Robo Corporation's financial statements at December 31 . Year 4, for this transaction should
a. not mention this commitment.
b. reflect a liability of $500,000 .
c. reflect a liability of $50,000.
d. reflect a liability of $450,000.
e. reflect a liability of $400,000.
B
You might also like to view...
Bullying includes various behaviors. It can be acts of physical aggression, such as pushing, pinching, or cornering. It can be verbal taunts and threats, such as name calling, jokes at someone's expense, and humiliation. It can be relational aggression, such as gossip, rumors, and social isolation. It can be cyber-aggression, such as posting negative or derogatory images, text messages, or e-mail.Describe a situation of bullying that you have seen or experienced. What happened? How could you have dealt with this situation better? What was the end result?
What will be an ideal response?
Active recruitment of minority applicants to meet hiring goals is termed:
A) reverse discrimination. B) affirmative action. C) comparable worth. D) bonafide occupational qualification.
A corporate bond portfolio manager was overhead asking:"Why do I need a credit risk model. I can get information about the probability of default from credit ratings?" How would you respond to this portfolio manager?
What will be an ideal response?
The assignment problem is a special case of the
a. transportation problem. b. transshipment problem. c. maximal flow problem. d. shortest-route problem.