A qualified indorsement puts limited liability on the indorser
Indicate whether the statement is true or false
TRUE
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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.
The major criticism of the lower of cost or market rule for valuation of inventory is that
A) holding losses are recognized, but holding gains are not. B) holding gains are recognized, but holding losses are not. C) the total difference between selling price and cost is usually recognized in the period of the sale. D) the conservatism principle is violated because of the use of the floor constraint.
A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?
A. Debit Supplies Expense $1,250 and credit Supplies $1,250. B. Debit Supplies Expense $850 and credit Supplies $850. C. Debit Prepaid Supplies $850 and credit Supplies Expense $850. D. Debit Supplies Expense $1,250 and credit Supplies $2,100. E. Debit Supplies $1,250 and credit Cash $1,250.
Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter Silvia, in the event of his death. The doctors say that Mr. Jacob will live for about six months
A day after the will is written, Silvia wishes to transfer her expected inheritance to her son, Jacob Jr. This assignment will be ________. A) valid B) conditionally valid C) invalid D) re-assignable by Jacob Jr.