Consultants notify management of Generic Drug that a prescription medication poses a potential health risk. Legal counsel indicates that a product recall is probable and is estimated to cost the company between $5 and $8 million. How will this affect the company's income statement and balance sheet this period?
What will be an ideal response?
The contingent liability is probable and reasonably estimable, so a loss and a liability for the minimum amount of the range ($5 million) must be recorded. The entry will reduce income before taxes on the income statement and increase total liabilities on the balance sheet by $5 million.
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What are emoticons used for? When are emoticons appropriate, and when are they not?
What will be an ideal response?
The stock release copy of the sales order is not used to
a. locate and pick the items from the warehouse shelves b. record any out-of-stock items c. authorize the warehouse clerk to release custody of the inventory to shipping d. record the reduction of inventory
Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations
This is an example of a firm that successfully performed a(n) ________ to reach more consumers and ventures that are more profitable. A) upstream integration B) two-way stretch C) up-market stretch D) down-market stretch E) downstream integration
The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company
A) SWOT analysis B) benchmarking C) business portfolio analysis D) breakeven analysis E) prospecting