Boston Trombley Company is a defendant in a lawsuit alleging damages of $3 billion. The litigation is anticipated to continue for several years, but no reasonable estimate can be made at this time regarding ultimate financial responsibility. This situation is an example of:
a. An $3 billion expense to be recorded in the income statement during the year of the suit.
b. A loss contingency that should be disclosed in the notes to Boston's financial statements.
c. An estimated liability that must appear in Boston Trombley Company's balance sheet.
d. None of these. No accrual or disclosure is required in Boston's financial statements.
b
You might also like to view...
________ is an emotional/behavioral response to real or imagined threats to an established work routine.
A. A change agent B. Resistance to change C. An OD intervention D. Radical innovation E. Benchmarking
Mini-Case Question. Which of the four types of brand names does OrganicDrinks best represent?
A) a functional name B) an invented name C) a morpheme name D) an evocative name E) a founder name
SEM models are estimated so as to minimize the difference between the observed and
estimated covariance matrices. Indicate whether the statement is true or false
Organizational culture can be thought of as a social ______ system.
a. science b. psychology c. behavioral d. control system