In the accounting records of a defendant, lawsuits:
A. Should always be recorded.
B. Should always be disclosed.
C. Are estimated liabilities.
D. Should be recorded if payment for damages is probable and the amount can be reasonably estimated.
E. Should never be recorded.
Answer: D
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Equipment is purchased for $40,000. It has an eight-year useful life and a $21,375 residual value. Under the double-declining-balance method, what is the depreciation expense for year 3?
A) $875 B) $1,125 C) $1,375 D) $5,625
What advice would you give to someone who is being cyberbullied?
What will be an ideal response?
The unadjusted cash account balance for Carson Company at December 31 is $12,615. The bank statement showed an ending balance of $18,250 at December 31. The following information is available from an examination of the bank statement and the company's accounting records:Bank service charge$20Outstanding checks7,500NSF check from a customer425Deposits in transit1,222Check #433 for the purchase of inventory was written correctly and paid by the bank correctly for $432, but was recorded on the books at $234. Carson uses the perpetual inventory system.Required:a) Determine the true cash balance by preparing a bank reconciliation as of December 31.
What will be an ideal response?
Economies of scale, which reduce costs, can be achieved through
A. localization. B. employing the learning curve. C. standardization. D. careful supervision of the manufacturing process.