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sveta [45]
3 years ago
8

You are auditing Rodgers and Company. You are aware of a potential loss due to noncompliance with environmental regulations. Man

agement has assessed that there is a​ 40% chance that a​ $10M payment could result from the​ non-compliance. The appropriate financial statement treatment is to
A. since there is less than a​ 50% chance of​ occurrence, ignore.
B. since there is greater that a remote chance of​ occurrence, accrue the​ $10 million.
C. accrue a​ $4 million liability.
D. disclose a liability and provide a range of outcomes.
Business
1 answer:
aniked [119]3 years ago
4 0

Answer:

D. disclose a liability and provide a range of outcomes.

Explanation:

As there are 40% chances to the outcome that liability will occur, it is not nominal to be ignored. And therefore, it shall be shown in the balance sheet, as a note, with different possibilities and their expected results.

As the amount attached is huge and that the company shall not ignore such a coming liability, as if it do not happen, it can be reversed, and if it does the company shall be ready to have the liability in case of any default.

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When a distributor is involved in international trade, there are two sets of invoices: one set between the exporter and the dist
Tanzania [10]

Answer:

A. True

Explanation:

Invoices also called bills in accounting is used for recording sales transactions and to account for requests and receipts for payments.

If a distributor becomes involved in trade beyond national borders, Two sets of invoices are used. The international trade invoices (1st set of invoices) being the transaction details between the seller (exporter from other country) and the buyer who is the distributor (importer). While the local or domestic involves (2nd set of invoices) would show transaction details between the distributor (who's now the seller) and the buyers or customers.

This happens because the two transactions are separate containing separate information of seller's and buyer's name, addresses, contacts details, tariffs or taxes and so on.

8 0
2 years ago
Comfort Cords produces curtain cords. In the process of manufacturing those cords, it also produces hair ties which are sold sep
hoa [83]

Answer:

$609,000

Explanation:

The revenue in June for  Comfort Cords is the sum of the revenue from cords and hair ties.

The revenue from each is the product of the unit selling price and the quantity sold.

= 50000 * $12 + 9000 * $1

= $600,000 + $9000

= $609,000

3 0
3 years ago
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginni
andrey2020 [161]

Answer:

Predetermined manufacturing overhead rate= $35.65 per machine hour

Explanation:

Giving the following information:

Estimated the machine-hours= 45,900

The estimated variable manufacturing overhead was $7.53 per machine-hour.

The estimated total fixed manufacturing overhead was $1,290,708.

<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (1,290,708/45,900) + 7.53

Predetermined manufacturing overhead rate= $35.65 per machine hour

4 0
3 years ago
Which economic activity is part of a government's fiscal policy?
blagie [28]

Answer:

D. Spending tax revenues

Explanation:

Fiscal policies are the actions of the executive wing of the government to alter its spending and taxation strategies to achieve macroeconomic objectives. Fiscal policies are the activities of adjusting government spending and taxation in the economy.  

The government receives data on the state of the economy from various agencies.  The government adjusts its spending and taxes to influence the level of economic activities to achieve steady growth and stable prices.

5 0
2 years ago
Read 2 more answers
Some companies use automated payment processing technology in which paper checks that may arrive at a lockbox are converted into
Otrada [13]

<span>The answer in the given statement above is the accounts receivable conversion. This type of process allows an individual to receive the amount that he or she converts from paper check into a real amount when scanned under an electronic machine in which is being described above.</span>

5 0
2 years ago
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