Vacation pay is considered a contingent liability.
Answer the following statement true (T) or false (F)
True
If the likelihood of a future obligation arising is probable (likely) and its amount can be reasonably estimated, a liability is recognized in the financial statements. Contingent liabilities in this category include warranties, vacation pay, and sick leave.
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A firm is said to enjoy economies of scale over the range of output for which the long-run average cost is
a. increasing. b. constant. c. decreasing. d. stagnant.
A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a ________.
A) merchandising company B) manufacturing company C) service company D) trading company
When Dunkin Donuts decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Dunkin Donuts is currently examining the ____ forces in its environmental analysis.
A. economic B. cultural C. ethical D. technological E. legal
A claims-made liability insurance contract pays for:
A) injuries suffered by the insured during the policy period B) defense costs if the insured is sued, but not for actual damages awarded to a plaintiff C) claims only when an insured is sued, but does not pay for defense costs D) claims filed against the insured during the policy period