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-Dominant- [34]
2 years ago
12

During the year, a $1,000,000 lawsuit was filed against a U.S. company for unsafe working conditions. Management and the attorne

ys feel that it is not likely that the company will lose the case. The plaintiff who filed the lawsuit has offered to settle for $600,000. Management estimates that lawsuits for unsafe working conditions are generally settled for $300,000. What amount of contingent liability would be recorded for this lawsuit on the company's current balance she
Business
1 answer:
Anton [14]2 years ago
7 0

Answer:

The Contingent liability to be recorded for this lawsuit on the current balance sheet is $0.

Explanation:

A Contingent liability is recorded when the chances are probable and the amount can be reasonably estimated.

As in the given case it is not probable that the company will lose the case, no Contingent liability to be recorded.

Therefore, The Contingent liability to be recorded for this lawsuit on the current balance sheet is $0.

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Which of the following activities of the central bank do not constitute monetary​ policy? A. Monitoring key stock prices. B. Mon
charle [14.2K]

Answer: Please refer to Explanation

Explanation:

1. A. Monitoring key stock prices.

This does not fall under what the Central Bank does when Monetary Policy is implemented. Monetary Policy allows the government to influence interest rates, monitor financial institutions and indirectly control money supply.

2. Low and predictable levels of inflation.

Under the mandate of PRICE STABILITY, the Fed aims to ensure low and Predictable inflation in the long run to preserve the purchasing power of money.

3. Management of interbank transfers.

The Fed monitors and manages Interbank transfers to protect the financial system.

4. Management of Macroeconomic fluctuations.

- The Fed just embarked on monetary policy to correct the Economy. This was a Macro Economic function as it dealt with the entire economy as a whole.

5. Regulation

The Fed acts as the regulator of Banks and ensures that they follow certain practices and rules to ensure the safety of the banking system and the money belonging to the people who put it there.

5 0
3 years ago
Target's liabilities exceed owners' equity.<br> a) true<br> b) false
Likurg_2 [28]

Answer: True

Explanation:

As of February 2020, Target Corp's total liabilities were listed to be $30,946,000,000 while its shareholder equity was significantly lower at $11,833,000,000.

Target Corp therefore does indeed have liabilities that exceed owners equity and by a substantial amount. This has also been the trend since at least 2015.

4 0
3 years ago
Gibson Guitar Corporation has chosen to build instruments one at a time, by hand. Gibson's century-old tradition of creating inv
kow [346]

Answer:

product

Explanation:

8 0
2 years ago
Suppose a company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk. To acc
Andreas93 [3]

Answer: b. The duration of its liabilities must equal the duration of its assets

Explanation:

Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.

It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.

When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.

Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.

7 0
2 years ago
Suppose the government introduces tax incentives to increase private household saving. What would be the effect on net capital o
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Answer:

Mama thu thu thu thu thu thu

Explanation:

Hi

6 0
2 years ago
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