There are some liabilities, such as income tax payable, for which the amounts must be estimated. Failure to estimate these amounts and record them would be a violation of the
a. matching principle
b. convention of conservation
c. practice of consistency
d. concept of historical cost
a
You might also like to view...
In 2015, Morton Co sold 100 hot air balloons at $4,000 each. The balloons carry a 5-year warranty for defects. Morton estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000 . $11,000 in claims was actually incurred during the year to honor their warranty. What was the balance in the ending estimated
warranty liability at the end of the year? a. $47,000 b. $42,000 c. $37,000 d. $ 5,000
In the context of organizational structures, which of the following forms of departmentalization lowers costs by reducing duplication?
Which of the following calculations is used to determine the amount of the liability reported on the balance sheet for underfunding?
a. Plan assets less projected benefit obligation. b. Projected benefit obligation less plan assets. c. Plan assets less accumulated benefit obligation. d. Accumulated benefit obligation less plan assets.
With ________ pricing, customers are allowed-even encouraged-to haggle about prices.
A. odd/even B. variable C. high/low D. captive E. psychological