1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
polet [3.4K]
3 years ago
15

Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in Dece

mber 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.8 million. The fiscal year ends on December 31. Required: Should this contingent liability be reported, disclosed in a note only, or neither?
Business
1 answer:
Strike441 [17]3 years ago
6 0

Answer:Yes it should be reported.

$2.8 million should be reported in the the balance sheet as a liability.

Explanation: Contingent liabilities are liabilities that depend on the outcome of an event that may likely not occur.

Before they can be reported in financial statement, it must be able to estimate the value of such contingent liability and the liability must have a higher than 50% possiblity of being achieved.

If the value can be estimated, then the liability has a higher chance of being realised.

Qualifying contingent liabilities such as the $2.8 million estimated by Top Sound International should be recorded in the income statement as an expense and a liability on the balance sheet.

Therefore the $2.8 million liability should be reported in its 2018 balance sheet

You might be interested in
When sales agent jane first contacted john, after her three-month vacation to barbados, was seller john her client?
Mashutka [201]

If  sales agent jane first contacted john, after her three-month vacation to barbados. No, seller john  was not her client?

<h3>Who is a sales agent?</h3>

A sales agent can be defined as someone whose sole responsibility is to sell product to potential customers and to as well market product to buyer.

Hence, seller John is not her client based on the fact that both John and Jane did not agreed on any agency relationship terms and agreement.

Learn more about sales agent here:brainly.com/question/25743891

#SPJ1

6 0
2 years ago
McLeod Inc. is considering an investment that has an expected return of 8% and a standard deviation of 10%. What is the investme
Rudik [331]

Answer:

the investment's coefficient of variation is 1.25.

Explanation:

The  coefficient of variation relates the units of return to the units of risk. It expresses the unit of risk per 1% of return as follows :

<em>Coefficient of Variation = Standard Deviation ÷ Return</em>

Therefore,

Coefficient of Variation = 10 ÷ 8

                                       = 1.25

7 0
3 years ago
​ object responsibility is important because it helps to decide what methods are assigned to what classes.
stiv31 [10]
It's not so much an important of trust, but preferably one of managing complexity. Software Engineering Stack shifted a question and answer site for professionals. academics, and students working within the systems development life around. Private adaptable help averts people from a hinge on certain parts of your code.
8 0
3 years ago
On July 1, 2019, Sheffield Corp. pays $20,700 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fisca
11111nata11111 [884]

Explanation:

The journal entries are as follows:

On July 1

Prepaid Insurance A/c Dr $20,700

           To Cash A/c $20,700

(Being prepaid insurance is paid)

On December 31

Insurance expense A/c Dr $

          To Prepaid insurance A/c $1,110

(Being the insurance expense is recorded)

The insurance expense is shown below:

= $20,700 ÷ 3 years × 6 months ÷ 12 months

= $3,450

3 0
3 years ago
What are the managerial implications of a borderless organization?
Andrews [41]
<span>In my opinion, the managerial implications of a borderless organization could be a language barrier: complete from a different spoken language to even just day to day colloquial words or phrases. Another could be different labor laws in different countries. Another big one is the fact that different time zones could come into play and if improperly accounted for or organized with, this could really turn business upside down.</span>
7 0
3 years ago
Other questions:
  • To make a profit while benefiting humanity" is an example of a mission statement that A. incorporates values. B. is too vague. C
    6·1 answer
  • Question 1 A firm sold goods for $50,000. $10,000 was paid in cash, and the remaining $40,000 was assigned to a customer’s credi
    13·1 answer
  • Red Hot Inc. and Maverick Cycles Inc. are two competing motorcycle companies. While Red Hot's Cost of goods sold/Revenue is 63.4
    9·1 answer
  • The ________ holds that an individual should never do anything that is not honest, open, and truthful and that he or she would n
    8·1 answer
  • The value of Terrah's personal residence has declined significantly because of a recent forest fire in the area where she lives.
    14·1 answer
  • Aggressive marketing in the context of format wars: a. does not encompass point-of-sales promotion techniques. b. deters early a
    5·1 answer
  • Your apartment gets robbed, and $1,560 worth of your belongings are gone. you have renter's insurance to cover the loss, but you
    14·2 answers
  • On which of the following levels are databases not used?
    6·1 answer
  • Hillary enters into a shipment contract with a dress manufacturer for fifty red dresses. The dress manufacturer sends fifty blue
    11·1 answer
  • 10 POINTS NEED HELP Explain why you should search your name online before actively seeking employment.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!