Fisher Company has been named as the defendant in a class action lawsuit. In addition, the company is located in a region that normally has an active hurricane season. Indicate whether each of the following statements is true or false. ________ a) If the likelihood of a future obligation is probable and can be reasonably estimated, a liability should be recognized on the balance sheet.________ b) If the outcome is probable, but cannot be reasonably estimated, the contingency should be disclosed in the notes to the financial statements.________ c) If the outcome is reasonably possible but not likely, the contingency should be disclosed in the notes to the financial statements.________ d) Every lawsuit, regardless how frivolous, should be disclosed in the notes to the financial
statements.________ e) Since it is located in a region for which an active hurricane season has been predicted, the company must disclose the contingent liability, which is the potential for catastrophic loss, in the notes to their financial statements.
What will be an ideal response?
a) T b) T c) T d) F e) F
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Patty buys a Persian rug from James, a plumber, in an online auction. James called Patty on Wednesday to inform her that she submitted the winning bid and that she could pick it up anytime or he would ship the rug to her on Friday. On Thursday, the rug was destroyed in a garage fire at James' house. Which of the following statements is true in this case?
A. Patty bears the loss as James was only providing a service. B. James bears the loss as he has tendered delivery of goods. C. Patty bears the loss as James is not a merchant. D. James bears the loss as he has not delivered the goods.
Since Debbie's last test score was ________, she plans on studying ________ this time around
A) the miserablest/most diligently B) more miserable/most diligently C) miserably/diligent D) miserable/more diligently
If a court finds that the subject matter of a contract is not legal, the court will undo the contract
and place the parties in the status quo. Indicate whether the statement is true or false
Which of the following duties would not be delegable?
a. John has a contractual duty to pay Isaac $50. b. Karl has a contractual duty to deliver 50 bushels of corn to Michael by October 1. c. Jeffrey has a duty to mow Georgia's lawn at least once a week. d. Arthur has a duty to teach an accounting class at a community college during the fall semester.