If the likelihood of a future event is probable and the amount of the expense can be estimated, how should the company report the contingency?
What will be an ideal response?
Record as expense and a liability based on estimated amounts.
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Inception, a recent Hollywood blockbuster, had created a lot of interest among the viewers even before its release due to the credentials of its makers. The movie was discussed in social network pages and discussion forums
The discussions increased after its release and it helped the movie do good business. Which of the following most closely describes the type of marketing discussed in this example? A) personalized marketing B) direct marketing C) interactive marketing D) word of mouth marketing E) technology marketing
The use of which of the following valuation methods, utilized in valuing common stock, is superior since it considers expected earnings?
A) Liquidation value B) Book value C) P/E multiple D) Present value of the interest
How much does the value of IWPI-Spain, viewed as a stand-alone firm, change if the royalty fee is increased by 1% and the overhead allocation fee is reduced by 1%? What is the change in value to IWPI-U.S.?
What is the source of this change in value?
Consider the data on Inventory of Widgets Over a 10-Day Period. Any time that ending inventory falls to 15 or below, an order is placed for 20 units of the product. The lead time for delivery varies and is shown in the column under Lead Time. If the inventory costs amount to $3 per widget per day, then what are the total inventory costs?
A. $345
B. $215
C. $785
D. $68