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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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.............................................................................
ahrayia [7]

In 2005, bankruptcy reform laws:

A: made student loans dischargeable in bankruptcy

B: required debtors to pay more of their debts in bankruptcy

Answer:

B: required debtors to pay more of their debts in bankruptcy

Explanation:

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which was passed in 2005, reviewed the bankruptcy process in America.

This law was reviewed because it wanted to prevent abuse of the bankruptcy process.

Therefore, In 2005, bankruptcy reform laws required debtors to pay more of their debts in bankruptcy.

6 0
3 years ago
1. What is the Law of Demand?
Ivanshal [37]

ok ok poko kdwkdwExplanation:

3 0
3 years ago
Suppose you are a supply chain manager for De Beers Diamond co., and your job is to order components for a manufacturing facilit
Fed [463]

Answer:

100 units

Explanation:

Given that,

Annual demand (D) = 500 units

Ordering cost (S) = $5 per order

Holding cost (H) = $0.50 per unit per year

Optimal order quantity(Q):

=\sqrt{\frac{2\times D\times S}{H}}

=\sqrt{\frac{2\times 500\times 5}{0.50}}

=\sqrt{\frac{5,000}{0.50}}

=\sqrt{10,000}

      = 100 units

So, the optimal number of diamonds to be ordered is 100 units.

4 0
3 years ago
Ralph pays his workers $ 100 each, and labor is the only variable cost. At a quantity of 5000 chickens, how many workers does he
Flura [38]

Answer:

He hires 8 workers

Explanation:

The total cost is $1600 for 5,000 chickens minus the fixed cost of  $800, which equals $800. The total cost is total of fixed cost and variable cost as in absence of production the total variable cost is zero so from this we can conclude that total fixed cost is zero.

Then divide the total variable cost ($800) buy what Ralph pays his workers ($100), which comes to 8.

6 0
3 years ago
When a company prepares financial statements using standard costing, which items are reported at standard cost
Dmitrij [34]

Answer: Inventories and cost of goods sold.

Explanation:

Standard costing is used in accounting and it simply has to do with the substitution of the cost that's expected for a product with an actual cost when preparing financial statements.

The difference that's then between the actual costs and expected costs are then recorded as variance. It should also be noted that when a company prepares financial statements using standard costing, the items that are reported at standard cost will be Inventories and the cost of goods sold.

7 0
3 years ago
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