If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is probable, a contingent liability should be
A. Disclosed and reported as a liability.
B. Reported as a liability, but not disclosed.
C. Disclosed, but not reported as a liability.
D. Neither disclosed nor reported as a liability.
Answer: A
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In the table above, a change in the ______ will result in a movement along the supply schedule of pounds.
a. dollar/pound exchange rate b. rate of interest in the United States c. per-capital income of Americans d. level of technology in the United States
Marston Corporation uses the FIFO method in its process costing system. The equivalent units of production for March for conversion costs totaled 37,500 units. The beginning work in process inventory in March consisted of 15,000 units, 60% complete with respect to conversion costs. The ending work in process inventory in March consisted of 10,000 units, 75% complete with respect to conversion costs. The number of units started during the month was:
A. 41,500 units B. 72,500 units C. 34,000 units D. 25,000 units
Absorption costing is useful because it reflects the full costs that sales must exceed for the company to be profitable.
Answer the following statement true (T) or false (F)
A buyer and seller enter into a written contract for the sale of some specialty steel to be used by
the buyer in the manufacture of some appliances. The contract specified all the terms of the contract except the price. Which of the following is true? A) A reasonable price will be implied. B) There would be a contract except that the price cannot be implied in this contract because it is not a contract for the sale of a commodity with an easily determined market price. C) A price will be implied only if the contract called for the price to be determined at a later date. D) There is no contract because there is no meeting of the minds as to a material term.