Under what circumstances is a contingent liability reflected in the accounting records as though an actual liability exists?
For a contingent liability to be reflected in the accounting records, it must be probable that the contingent liability will become an actual liability, and the amount must be subject to reasonable estimation.
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Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,000 and Stuart is $70,000 . Bobbi sells his interest in the partnership to John for $50,000 . The journal entry to record the admission of John as a new partner would include
a. a credit to John's capital account for $40,000 b. a credit to Stuart's capital account for $10,000 c. a credit to John's capital account for $50,000 d. a credit to John's capital account for $40,000 and a credit to Stuart's capital account for $10,000
Which of the following is true regarding the financial reporting entity of a state or local government?
A. Only a primary government is reported in the government-wide statements. B. A school district could never be a primary government. C. Many component units are discretely presented, rather than blended. D. Both Only a primary government is reported in the government-wide statements and a school district could never be a primary government are true.
"Getting this new business launched was absolutely a team effort, and clearly a situation of 2 + 2 = 5. Like all of you, I worked a lot harder in this team than I would have alone," said Kayley. Kayley's team members exemplified the social facilitation effect, in which
A. a team member keeps abreast of current developments and informs the team of relevant information. B. teams give direction to the subunits under their jurisdiction. C. team members are so cooperative that agreeing with one another's opinions and refraining from criticizing others. D. individuals work harder when they are members of a group than when they are working alone. E. teams operate separately from the regular work structure. F. ideas become norms.
Under federal law, employees may not waive their rights under the Age Discrimination in Employment Act (ADEA)
a. True b. False Indicate whether the statement is true or false