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1 year ago

A contingent liability which should be disclosed on the balance sheet but does not require footnote disclosure. (true/false)

1 answer:

4 0

A responsibility or possible loss that could materialize in the future based on how a particular occurrence plays out is known as a contingent liability.

<h3>What is contingent liability?</h3>

A responsibility or possible loss that could materialize in the future based on how a particular occurrence plays out is known as a contingent liability. Contingent liability can take the form of pending investigations, product warranties, and potential lawsuits. Liabilities that may be incurred by a company dependent on the result of an uncertain future event, such as the result of an ongoing lawsuit, are known as contingent liabilities.

When they are both probable and reasonably estimable as a "contingency" or "worst case" financial consequence, these obligations are not recorded in a company's records and are not displayed on the balance sheet. The kind and size of the contingent liabilities may be described in a footnote to the balance sheet. It is feasible to categories a loss's possibility as remote, improbable, or probable.

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A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real w

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Answer: Both will raise the same amount

Explanation:

The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.

Both methods would therefore yield the same amount if the government uses either of them.

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2 years ago

A software development project at day 70 exhibits an actual cost of $78,000 and a scheduled cost of $84,000. The software manage

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Answer and Explanation:

Given:

Actual time (AT) = 70 days

Actual cost (AC) = $78,000

Scheduled cost (SC) = $84,000

Earned value (EV) = $81,000

Computation of cost variance:

Cost variance = Earned value - Actual cost

Cost variance = $81,000 - $78,000

Cost variance = $3,000

Computation of schedule variance:

Schedule variance = Earned value - Scheduled cost

Schedule variance = $81,000 - $84,000

Schedule variance = - $3,000

Computation of Cost schedule Index (CSI):

Cost schedule Index = EV² / (AC × SC)

Cost schedule Index = ($81,000)² / ($78,000 × $84,000)

Cost schedule Index = 1.00137363

Cost schedule Index = 1.001 (Approx)

Computation of time variance:

Time variance = (AT × CSI) - AT

Time variance = (70 × 1.001) - 70

Time variance = (70.07) - 70

Time variance = 0.07 days

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2 years ago

How can technological innovation help a company become globalised

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Answer: Technology is the vital force in the modern form of business globalization. ... Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.

Explanation:

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3 years ago

Which of the following is an advantage of consumer credit? a) It costs more than cash purchases. b) It can encourage customers t

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Answer:

The answer is D

Explanation:

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3 years ago

Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have the

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Answer:

Cobras Incorporated

Trial Balance as at March 31.

Debit Credit

Supplies $1,100

Buildings $41,000

Cash $2,100

Accounts Receivable $2,800

Prepaid Insurance $1,100

Salaries Payable $300

Accounts Payable $1,500

Common Stock $21,000

Retained Earnings $14,500

Service Revenue $18,100

Utilities Expense $2,300

Salaries Expense $5,000

Totals $55,000 $55,000

Explanation:

A Trial Balance is used to check mathematical accuracy in ledger Accounts. It represents a list of Balances : Debit and Credit extracted from the Ledger Accounts.

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2 years ago