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Degger [83]
3 years ago
15

Paul Company issues a product recall due to an apparently preexisting and material defect discovered after the end of its fiscal

year. Financial statements have not yet been issued. The action required of Paul Company for this reasonably estimable contingency for the year just ended is: To do nothing relative to the contingency. To accrue a long-term liability. To disclose it in a note to the financial statements. To accrue the liability and explain it in a note to the financial statements.
Business
2 answers:
tatuchka [14]3 years ago
6 0

Answer:

To accrue the liability and explain it in a note to the financial statements.

Explanation:

When a company accrues a liability, it incurs a financial obligation which has not been paid for yet in that period. The cash payment has not occurred yet however, the company still pays for the benefit gotten.

These liabilities are recorded in financial records in the period when the payment has not been made and reversed after the payment has been made.

Explaining the accrual in notes to the financial statements, reveals important information that should be carefully taken into consideration when reading a company's balance sheet.

Oksi-84 [34.3K]3 years ago
5 0

Answer:

To accrue the liability and explain it in a note to the financial statements

Explanation:

Since Paul company discovers a pre-existing material defect after the end of its fiscal year and Paul to preexisting material defect after the end of it fiscal year, and the Financial statements have not yet been issued. What is expected of Paul's company is "To accrue the liability and explain it in a note to the financial statements".

This is relative to current liabilities and contingencies. In cases of a company acquiring a liability, the company is obliged to finances which is yet to be paid within that time, cash transactions has not occurred, but the company will pay from the proceeds it has received.

The liabilities incurred are recorded within the financial records of the given time that the payment is made and overturned after the payment is made.

Paul's company explaining the liability in the note of accrual presented in the financial statement at the end if that fiscal year shows a vital information that attention should be taken to when reading the company's balance sheet.

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True or false: production runs can be scheduled in one or two shifts.
irina1246 [14]
The answers are as follows:
1. TRUE.
Shift schedule is a practice used in manufacturing industries to increase the numbers of hours that is used in production process. The shift divides the hours in the day into specific period and assign teams that will work during each period. The shift practice is usually employed in production run in order to ensure efficient use of all resources during the production process. Production run are typically schedule into one or two shifts; which may be during the day alone or during the day and night.
2. FALSE
Hiring the needed complement will eliminate OVERTIME, not the second shift. Hiring the needed complement usually remove the need for all overtime. Hiring the needed complement will make having a second production run team possible and this second team can handle the production process that ought to be done through overtime.
3. FALSE.
It is the duty of the management to strive to DECREASE STAFF TURNOVER.
Staff turnover refers to the rate at which employees are leaving a company and new employees are been absorbed. High staff turnover will make the company to spend more money on resources and training of new staffs.  
4. TRUE.
During periods of high demand, production usually increases and more workers are hired. Instead of hiring more workers, a company that has two production shifts may decide to add more workers to the first shift in order to increase the amount of work that could be done. This will result in the decrease in the number of the workers in the second shift.
5. FALSE
Increasing training hours decreases needed complement. Increasing the training hours will equip the workers with the needed knowledge which will make them more effective and productive. This will decreases the complement needed for the production process.
6. RECRUITING COST [B].
In a situation where a company has to hire more workers to the one it already has on ground as a result of increased production, then the company will have to spend extra money in the process of recruiting the needed workers.
7. DECREASE [B]
If the productive index is already at 100%, adding overtime will decreases the productivity index. This is because, overtime has a way of reducing the efficiency and the productivity of the workers, thus decreasing the amount of work done by them.
8. FALSE.
Workers training is entered in hours. The amount of training received by workers are measured in hours. The higher the training hours, the higher the amount of training which a worker has undergone and the higher will be the value of that worker to the company.
9. C
Each company is expected to have a base amount of $1,000 for each new worker that is hired. The company may decide to eliminate all other recruiting costs but this base amount can not be eliminated.
10. SEPARATION COST [C].
Separation cost are incurred when production level decreases and/ or automation level increases.
Separation cost refers to the cost that is needed to lay off an employee from an organisation. When the production level decreases or the company decide to automate their production processes, then some workers will have to be sacked and these workers have to be paid some money before they leave the company. This result in increase in the amount of money that the company will spend on separation cost.
8 0
4 years ago
Assume that we use a perpetual inventory system and that five identical units are purchased at the following dates and costs: Ap
quester [9]

Answer:

Cost of goods sold on April 25 is $13.80 and the inventory balance is $55.20

Explanation:

Data given:total unit

Cost of purchase with  data;

Date                  Amount

April 5                 $10

April 10                $12

April 15                $14

April 20                 $16

April 22                 $17

Total cost             69    

Average cost = total cost /total quantity

                       = 69/5

                       =13.8

The cost of the ending inventory is given on the balance sheet below

Date      Purchases              Cost of            Inventory Bal.   Avg Cost

                                            goods sold

April 5   $10* 1 unit= $10                -                        $10               10/1 = $10

April  10  $12* 1 unit=$12               -               10+ 12 = 22            22/2 = 11

April  15   $14* 1 unit=$14                  -           22+14 =36              36/3 = 12

April 20   $16* 1 unit= $16                  -          36 +16 =52            52/4 = 13

April 22    $17* 1 unit = $17                 -          52+17 =69            69/5 = 13.8

April 25             -           1 unit*13.8 = 13.80      69 - 13.8 = 55.20

5 0
4 years ago
In a judicial foreclosure, how long does the borrower’s redemption period last if a deficiency judgment isn’t being sought?
aniked [119]

There is no redemption period if the lender is not pursuing a deficiency judgment.

A judicial foreclosure permits the lender to get a deficiency judgment against the borrower. However, the homeowner has the “proper of redemption,” which lets him or her shop for the home returned from the hit bidder on the auction for 12 months after the sale.

In a judicial foreclosures state, the lender has to report a lawsuit in a courtroom in an effort to foreclose. In a nonjudicial foreclosure nation, the lender can foreclose without going through the court docket system. either way, the very last step within the foreclosure process is a foreclosure sale.

Redemption is a period after your home has already been sold at a foreclosure sale when you may nonetheless reclaim your private home. You may want to pay the high-quality mortgage stability and all fees incurred during the foreclosures system.

Learn more about foreclosures here brainly.com/question/15182362

#SPJ4

6 0
2 years ago
You just received an insurance settlement offer related to an accident you had three years ago. The offer provides you with thre
harina [27]

Answer:

It will be a better offer the option B because it yield a higher net present value at the given rate.

<u>B 88,457</u>

A 86,755

C 85,000

Explanation:

We are going to compare the present value of each annuity at the cost of capital rate 7.5%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

option A

C= couta, monthly payment 1,500

rate= 0.075 is an annual rate we divide by 12 to get the monthly rate

time = 6 years = 6*12 = 72 months

1,500 \times \frac{1-(1+0.075/12)^{-6*12} }{0.075/12} = PV\\

option A PV = 86,754.78646

option B

C = 1,050

time = 10 years

same rate

1,050 \times \frac{1-(1+0.075/12)^{-10*12} }{0.075/12} = PV\\

option B PV =  88,456.97984

option C = 85,000

It will be a better offer the option B because it yield a higher net present value at the given rate.

5 0
3 years ago
In January of year 0, Justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties.
ratelena [41]

Answer:

$4,800

Explanation:

The total amount of the premium can be deducted under the 12-month rule. The reason for this is that the insurance does not cover more than 12 months and can not cover any time that is outside the next year end.

8 0
3 years ago
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