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
galina1969 [7]
4 years ago
11

Long and Short, CPAs, were auditing Island Corporation for the year ended December 31, 2014. On January 11, 2015, a major custom

er of Island Corporation declared bankruptcy as the result of an uninsured loss due to a major fire in their warehouse on January 8, 2015. As a result, a material accounts receivable from the customer was determined to be uncollectible. Long and Short, CPAs, would expect the client to:____________.
A) treat the loss as a subsequent event and adjust the 2014 financial statements to record the loss on uncollectible accounts.
B) record the loss on uncollectible accounts as a routine transaction in the year 2015.
C) treat the loss as a subsequent event and provide a footnote about the loss in the 2014 financial statements.
D) file a lawsuit against the customer in hopes of collecting some of the money owed to the client.
Business
1 answer:
dusya [7]4 years ago
8 0

Answer: C) treat the loss as a subsequent event and provide a footnote about the loss in the 2014 financial statements.

Explanation:

The event happened in January 2015 which was after the books ended in December 2014. This makes it a subsequent event which is an event that occurs after the accounting period but before the Financial results are released.

The loss is therefore a subsequent event and must be treated by putting a footnote in the financial statement to reflect that the event happened after the accounting period.

You might be interested in
According to the video, which workers traditionally become Construction Managers?
alex41 [277]

Answer:

A is the answer

5 0
3 years ago
Read 2 more answers
Superior has provided the following information for its recent year of operation: The common stock account balance at the beginn
scoundrel [369]

Answer:

$12,000

Explanation:

Given the above information, we will apply the formula below:

The ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid

$90,000 = $65,000 + $37,000 - Dividend paid

Dividend paid = $65,000 + $37,000 - $90,000

Dividend paid = $12,000

Therefore, the above balance of $12,000 would be displayed in the retained earnings statment

7 0
3 years ago
In today's manufacturing environment, there is a growing philosophy that supports the deployment of smaller, less directly manag
Nastasia [14]

The team that includes about 5 to 15 members that work together to produce an entire product is called a Functional team

<h3>Who is a Functional team?</h3>

A Functional Team refers to a group of people with a common functional expertise who are working toward shared objectives (which is to produce an entire product.)

In conclusion, the team that includes about 5 to 15 members that work together to produce an entire product is called a Functional team

Read more about Functional team

<em>brainly.com/question/1490525</em>

7 0
2 years ago
A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product f
Kryger [21]

Answer:

The correct answer is option E.

Explanation:

A monopoly is a market where there is only single producer or seller. There are restrictions on entry in the market. The firms in the monopoly are price makers. That is why they have a downward sloping demand curve.

There are no close substitutes for the product and there is only one seller in the monopoly.

The firm may earn profit or loss or profits in the short run based on its revenue and cost conditions.

So, all the options given are correct.

7 0
3 years ago
Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage
FrozenT [24]

Answer:

The correct answer is option b.

Explanation:

Here, when the Juice smoothies does not pay Issac, the selling of fruits is an example of mitigation of damages.

Mitigation of damages can be referred as a contract law under which a victim of breach of law can take actions in order to minimize damages. It means to take any reasonable opportunity possible under the given circumstances to minimize or reduce damages. Though taking extreme actions is not required.

7 0
3 years ago
Other questions:
  • Dividends cause a(n) __________ in equity and are recorded directly in the _______ account.
    15·1 answer
  • Strong company applies overhead based on machine hours. at the beginning of 20x1, the company estimated that manufacturing overh
    12·1 answer
  • The following data pertain to operations concerning the product for the last month: Actual hours worked 8,100 hours Actual total
    13·1 answer
  • A simple economy produces two goods, Corn BreadCorn Bread and SoftwareSoftware.Price and quantity data are as follows:
    12·1 answer
  • The Plastics Division of Weston Company manufactures plastic molds and then sells them for $70 per unit. Its variable cost is $3
    9·1 answer
  • 1. On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary's original cost was $200,000 and a
    10·1 answer
  • True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything els
    13·1 answer
  • On June 30, 2017, Prouty Co. had outstanding 9%, $5,000,000 face amount, 10-year bonds that pay interest semi-annually on June 3
    11·1 answer
  • What are the causes of xenophobia​
    15·2 answers
  • Perez Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!