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Nadusha1986 [10]
4 years ago
7

Unified Airlines is being sued by Northeast Airlines for $5,000,000. At the end of the year, Unified feels it is probable that i

t will pay $5,000,000 at some point in the following year. What should Unified and Northeast record at the end of the year concerning the lawsuit?
Business
1 answer:
alexgriva [62]4 years ago
4 0

Answer:

Unified records $5,000,000 contingent loss; Northeast does not record any contingent gain

Explanation:

CONTIGENT LOSS can be defined as a liability or loss which is often dependent upon unforeseen circumstances which may occur in the future and may not occur and may be incurred by the entity based on the result of the future event. which is why it is often recorded only in a situation where it can be estimated if not, then it should not be disclosed.

CONTINGENT GAIN can be defined as an asset which are yet to occurred in which when it occured it will lead to increase in asset which is why it is not often recognized in the financial statements of a business, company or organisation until the transaction has been settled fully.

Therefore CONTINGENT ASSET leads to potential gain.

Concerning the law suit:

UNIFIED records $5,000,000 contingent loss; NORTHEAST does not record any contingent gain.

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2019 2018 2017 2016 2015 Sales $ 672,736 $ 439,697 $ 356,030 $ 248,972 $ 185,800 Cost of goods sold 352,273 230,192 188,636 130,
drek231 [11]

Answer:

                                      2019        2018     2017      2016     2015

Sales                              362           237      192         134        100

Cost of goods sold       365           238      195         135        100

Accounts receivable    254           202       191          114        100

Explanation:

Note: See the attached excel file for the table showing how the trend percents are calculated.

Trend percents, often known as index numbers, can be described as percents that are used for comparing financial data across time to a based year or period. This can be calculated using the following formula:

Trend percents = (Analysis year amount / Base year amount) * 100 ........ (1)

Using equation (1), the following table shows the trend percents computed as follows:

                                     2019         2018     2017      2016     2015

Sales                              362           237       192         134        100

Cost of goods sold       365           238       195         135        100

Accounts receivable     254           202       191          114        100

Download xlsx
4 0
3 years ago
How Taxation and Legislation impact positively and negatively on a company.
Leto [7]
Taxation decreases the income earned by a firm by 28% it means this affects the business negatively and when taxation is paid it positively improve the economic growth
5 0
3 years ago
Data for Divisions A, B, C, D, and E are as follows:
Law Incorporation [45]

Answer:

1. A

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6 0
3 years ago
Use the scenario to answer the question that follows.Marta and Shanika open their own computer repair shop and agree to share th
devlian [24]

Answer:

The correct answer is:  Specialization.

Explanation:

Specialization happens when a person, business or region focuses their productive efforts on a smaller subset of tasks or products to gain a competitive advantage. By specializing, a person or company often becomes better at that task or production than competitors. Usually, the choice is driven by the skills that suits the best to the people or company handling the business.

4 0
3 years ago
Within the food service industry​ (restaurants that serve meals to​ customers, but not just fast​ food), find examples of firms
NikAS [45]

Answer:

Answer for the question:

Within the food service industry​ (restaurants that serve meals to​ customers, but not just fast​ food), find examples of firms that have sustained competitive advantage by competing on the basis of​ (1) cost​ leadership, (2)​ response, and​ (3) differentiation. Cite one example in each​ category; provide a sentence or two in support of each choice. ​(​Hint: A ​"99cents ​menu" is very easily copied and is not a good source of sustained​ advantage.)

is given in the attachment.

Explanation:

7 0
3 years ago
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