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topjm [15]
2 years ago
15

A company is involved in a lawsuit for which the contingent liability is remote. How should the liability be treated on the bala

nce sheet
Business
1 answer:
user100 [1]2 years ago
8 0

A company is involved in a lawsuit for which the contingent liability is remote. The liability should be treated on the balance sheet as unrecorded and undisclosed.

On the balance sheet, the liability should be treated in a manner that is unrecorded and undisclosed:

  • The balance sheet stands for a financial statement that communicates the book value of a particular organization.
  • Contingent liabilities rely upon the outcome of an unlikely event.
  • These contingent obligations become liabilities in the future.
  • If the contingent liability happens to be remote, then it must not be reflected in the balance sheet.
  • The liability should be treated on the balance sheet as unrecorded and undisclosed.

Therefore, if a company is involved in a lawsuit for which the contingent liability is remote then the liability should be treated on the balance sheet as undeclared and undisclosed.

Learn more about liabilities here:

brainly.com/question/24534918

#SPJ4

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Answer: Choiceboard

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5 0
3 years ago
What is the important role of the government in market economies? A. to control prices and costs B. to prevent monopolies and co
snow_lady [41]
B. Because the government can't and shouldn't control the prices of items or which items and services are sold, they should lay down the ground rules of trading, buying, and selling, so that they Can prevent monopolies and collusion.
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3 years ago
Read 2 more answers
Unit 1 Quiz Submit 6 A market economy has several benefits, but it also has some drawbacks. What is one negative effect a market
Lesechka [4]

Answer:

A. It creates extreme divisions between the wealthy and the poor

Explanation:

The market economy is profits driven. The prices of goods and services, including essential goods, are set to generate profits for the producer. Only people with resources are able to acquire these goods.  

The market economy creates social inequities as those with fewer resources will always afford little. Meanwhile, owners of the factors of production continue making profits and growing more wealthy. Economies with a market economy will have people at both extreme ends of wealth; those with a lot and those who barely have any

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3 years ago
For each of the items listed below, indicate whether the item would be reported in the
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Answer:

Note: The complete question is attached below as picture

Indication of how they should be reported are as follow:

1) Budgetary Schedules : FINANCIAL SECTION AS RSI (RSI)

2) Letter of Transmittal : INTRODUCTORY SECTION (I)

3) Legal debt limitations and debt margin : STATISTICAL SECTION (S)

4) A description of government's financial conditions : FINANCIAL SECTION AS MD&A (MDA)

5) Property tax collection and levy information : STATISTICAL SECTION (S)

6) Defined benefit pension plan schedules : FINANCIAL SECTION AS RSI (RSI)

7) Financial highlights of the fiscal year : FINANCIAL SECTION AS MD&A (MDA)

8) Auditors report : FINANCIAL SECTION (F)

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4 0
3 years ago
A firm has a market value of equity of $50,000. It borrows $12,500 at 7%. If the unlevered cost of equity is 18%, what is the fi
Mariulka [41]

Answer: 21.63%

Explanation:

The firm's cost of equity capital will be calculated thus:

Market value of assets = $50000

Debt = $12500

Cost of debt = 7%

Unlevered cost of equity = 18%

Then, we'll calculate equity which will be calculated as:

= Market value of assets - Debt

= $50000 - $12500

= $37500

Then, the cost of equity capital will be:

= Unlevered cost of equity + [(Debt/equity) x (Unlevered cost of equity - Cost of debt)]

= 18% + [($12500/$37500) x (18% - 7%)]

= 18% + [0.33 x 11%]

= 18% + 3.63%

= 21.63%

8 0
3 years ago
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