Question

Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000.

Answer 1

This amount would have to be recorded as not accrued in the circumstance that he is defending against a lawsuit.

What is a lawsuit?

A lawsuit is an action brought by one or more parties in a civil court of law against another party. Only a limited number of laws from long ago that are still in force include the phrase "suit in law."

The most frequent reasons to "sue" an employer are discrimination, harassment, wrongful termination, and workplace injuries, whether accusations are made or a lawsuit is filed directly. More information about each sort of claim is provided below.

Read more on lawsuits here:brainly.com/question/25389760

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required: Indicate the amount Erismus would record as an asset, liability, or not accrued in the following circumstances

Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000.