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klio [65]
3 years ago
14

A foreign subsidiary of a U.S.-based company has been notified of a loss contingency with an estimated cost ranging between $220

,000 and $250,000 which is probable of resulting in an actual loss. Each dollar amount within this range of cost is equally likely of being the actual outcome. According to U.S. GAAP, what is the amount recognized as a provision for loss contingency?
Business
1 answer:
Marizza181 [45]3 years ago
3 0

Answer:

The amount recognized as a provision for loss contingency is $220,000

Explanation:

According to the United States  Generally Accepted Accounting Principles (US GAAP), the provision for loss contingency should be recognized based on the estimated amount. If the range is given then we should report the lower amount or minimum amount

In the given question, two amounts are given i.e $220,000 and $250,000

So $220,000 should be reported

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With respect to the product decision, managers must be able to accept risk and tolerate failure. why this is a necessary hazard
Anastaziya [24]

Answer:

The correct answer is: Regarding the above, it is taken into account that the vast majority of new product ideas do not become marketable products, and most marketable products are failures. Perhaps hundreds of designs accompany each success. So it is the primary task of management to clearly assess the market in order to know what are the trends that allow a business duration over time.

Explanation:

The production or service execution process is the core process that encompasses all the operations carried out by an organization to transform requirements into a final product or service. The entries that involve orders and budgets become work orders that allow planning, design, manufacturing and execution, all supported by the support processes that involve purchases and resources. Finally, the exit of this activity constitutes the process of expedition and after-sale.

3 0
3 years ago
Leupold & Stevens, Inc., makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance
user100 [1]

Answer:

Penetration pricing

Explanation:

Is a marketing strategy used by businesses to attract customers to a new service or product.  By offering lower price during its initial offering, thats the way they do.   The lower price, helps a new producto or service penetrate the market and attract customers .

6 0
3 years ago
10 percent decrease in consumer incomes leads to a 20 percent decrease in the quantity demanded of good D. Instructions: Round y
Katyanochek1 [597]

Answer:

Income elasticity = 2

Normal good

Explanation:

Below is the given values:

Percentage decrease in consumers income = 10%

Percentage decrease in quantity demanded = 20%

Use the below formula to find the income elasticity:

Income elasticity = % change in quantity demanded / % in income

Income elasticity = -20/-10

Income elasticity = 2

Since the elasticity is 2 that means good is normal good.

4 0
2 years ago
Cash dividends paid on capital stock would be reported in the statement of cash flows in a.the Cash flows from investing activit
Basile [38]

Answer: The answer is c.the Cash flows from financing activities section

Explanation: Cash flows from financing activities section of the statement of cash flows provides an insight on how the company is funded. It shows the net cash flows used in funding the company. Transactions that appear under that section comprise debt, equity and dividends.

Investors analyze this section of the cash flows to know how the capital structure of an organization is managed to further understand the financial strength of the organization.

3 0
3 years ago
On June 30, 2021, Mabry Corporation issued $5 million of its 8% bonds for $4.6 million. The bonds were priced to yield 10%. The
Vedmedyk [2.9K]

Answer:

D. $30,000

Explanation:

The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.

This discount will be amortized using Effective Interest method as below

Interest Payment = $5,000,000 x 8% x 6/12 = $200,000

Interest Expense = $4,600,000 x 10% x 6/12 = $230,000

Discount amortization = $230,000 - $200,000 = $30,000

5 0
2 years ago
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