Bugs, Inc., a wholly owned subsidiary of the U.S.-based company, Pillows Ltd., was notified of a loss contingency with an estimated cost ranging between $50,000 and $150,000. Bugs, Inc. hired an expert appraiser who assessed that all possible dollar amounts of liability in this range are equally likely. Management of Bugs, Inc. has estimated that there is a 60 percent chance that this contingency will result in an actual loss.In the conversion from U.S. GAAP financial statements to IFRS financial statements, what is the amount of adjustment needed to adjust for the difference in accounting for a provision for loss contingency?
A. $50,000
B. $100,000
C. $0
D. $150,000
E. $200,000
Answer: B
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In a corporation, capital resulting from the retention of earnings is entered in the ____________________ account
Fill in the blank(s) with correct word
Answer the following statements true (T) or false (F)
1. Paul, who is normally an ethical person, has an opportunity to acquire what he feels is "easy" money in his job, and he believes it is safe to steal the money because nobody would know if he does take it. Paul rationalizes that it is fine to steal the money because he needs it more than the person whom the money belongs to. The psychological mechanism that causes Paul to want to steal the money is poor self-esteem. 2. Habitual cheating tends to begin with small infractions, such as illegally downloading books and songs, and then grows by increments into an ongoing deliberate strategy of deception or fraud. 3. Prior to a 2010 natural-gas pipeline explosion in San Bruno, California, Pacific Gas & Electric chose to use its surplus revenues to improve safety, an example of ethical decision making. 4. The employees of a production facility that produce parts for boats are meeting to discuss ways to control rising costs, which are affecting their bonus (incentive pay). The employees are internal stakeholders of the factory. 5. The task environment of Top-Notch Sewing consists of just two groups, customers and stockholders, who give the employees and management of Top-Notch the daily tasks that the company's employees will handle.
_______ is the rules of living and functioning in society.
a. Society b. Ideology c. Worldview d. Culture
Prepaid insurance is an asset because it will provide future benefits
Indicate whether the statement is true or false