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zimovet [89]
4 years ago
11

In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a

company must:_____.a. recognize the liability and report it on the balance sheet.
b. do nothing.
c. not recognize or disclose the liability until it is certain and the exact amount is known.
d. provide disclosure in the footnotes to the financial statements.
Business
1 answer:
Tems11 [23]4 years ago
6 0

Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

  1. Loss must be probable
  2. Amount must be estimable

If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

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Anyone would let me have their prodigy account please
Alenkinab [10]

Answer:

I don't have that game. You could sign up for it. Most people use their school email account so you'll have to create your own using your account.

7 0
3 years ago
Suppose that the risk-free rates in the United States and in Canada are 5% and 3%, respectively. The spot exchange rate between
Yuri [45]

Answer:

The futures price of the C$ should be 0.82/C$.

Explanation:

Let:

rUS = Risk-free rates in the United States = 5%

rC = Risk-free rates in Canada = 3%

S = Spot exchange rate = $0.80/C$

Since the rUS is greater than rC, we have:

Future price of C$ = S + ((rUS -rC) * S) = 0.80 + ((5% - 3%) * 0.80) = 0.80 + (2% * 0.80) = 0.80 + 0.016 = 0.816, or 0.82

Therefore, the futures price of the C$ should be 0.82/C$.

4 0
3 years ago
New York State also has a data disposal law requires that any person or business destroying records must take action that is con
givi [52]

Answer:True

Explanation: Data disposal law is a law which is usually enacted by the States in the United States of America,they contain necessary information and details concerning how the personal data and information of persons including their Employee can be disposed by both Government and private business entities.

DATA DISPOSAL LAWS ENSURES THAT THE RIGHT TO PRIVACY OF DATA OR INFORMATION IS GUARANTEED AND PROTECTED IN ORDER TO PREVENT THE DATA FROM BEING ABUSED OR ACCESSED BY OTHER PARTIES.

7 0
4 years ago
Collings College has annual fixed operating costs of $12,500,000 and variable operating costs of $1,000 per student. Tuition is
hjlf

Answer:

2,575,0000

Explanation:

The Fixed cost will remain fixed i.e : $12500000.

The variable cost is $1000 per student and the projected enrollment is 1500 students, hence the total variable cost is: 1000*1500 = $1500000.

The tuition fee is $8000 per student and projected enrollment is 1500 students, hence the total tuition fee will be: 8000*1500 = $12000000.

Hence the total cost is : 12500000+1500000+12000000 = 26000000.

The College received grants equalled to = 250000.

Hence the required amount is = 26000000-250000 = 25750000.

Hope this Helps

Thank You.

5 0
3 years ago
n preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is
nalin [4]

Answer:

$34,000

Explanation:

Calculation for the Net cash provided by operating activities

Net income 52,000

Adjustments :

Add Depreciation expense 30,000

Less Decrease in Accounts payable (18,000)

Less Increase in accounts receivables (25,000)

Less Increase in inventories (5,000)

Net cash provided by operating activities $34,000

Therefore Net cash provided by operating activities was: $34,000

3 0
3 years ago
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