Which of the following statements concerning contingencies is true?
A) Contingent liabilities are always recorded in the body of the financial statements.
B) Contingent liabilities are always disclosed in the footnotes to the financial statements.
C) Contingent gains are sometimes recorded in the body of the financial statements.
D) Contingent gains are sometimes disclosed in the footnotes to the financial statements.
D
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To find the days' payable,
A) divide 365 by the payables turnover. B) multiply the payables turnover by 365. C) divide the payables turnover by 365. D) subtract 365 from the payables turnover.
Liabilities generally arise from expected future transactions
Indicate whether the statement is true or false
In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?
a. The agreement must always be in writing. b. There must be evidence of undue influence. c. There must be an absence of invalidating conduct. d. A legal remedy must be available for there to be a breach.
Explain the two types of related diversification strategy with the help of examples.
What will be an ideal response?