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
andrew11 [14]
3 years ago
10

Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang

e is a better estimate than any other amount. The loss accrual should be
A. The maximum of the range.
B. The mean of the range.
C. Zero.
D. The minimum of the range.
Business
1 answer:
anygoal [31]3 years ago
6 0

Answer:

D. The minimum of the range

Explanation:

First, it is essential to note the accrual of loss contingency is accruable only if the amount is estimable to a reasonable extent and the loss is also probable. Wyatt Co's loss is actually both probable and reasonably estimated so it meets the two criteria.

Furthermore, since it is reasonable within a rang of outcomes, Accounting Standards Codification Topic 450 (of the Financial Accounting Standard Board) dictates the amount to be accrued should be the better estimate of all amounts within the range.

The standard further states that in a situation where a better estimate can not be determined among the other amounts within the range then the amount accrued should be the one at the range's low end or the minimum amount of the range.

All these criteria shows that Wyatt CO's loss should accrue the minimum amount in the range

You might be interested in
Net credit sales for the year are $750,000. The end of year accounts receivable balance is $160,000. The allowance for doubtful
alexandr402 [8]

Answer: $3000

Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.

The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

8000 (balance before bad debts have been accounted for)

- 5000 (balance after bad debts have been accounted for)

= $3000.

5 0
3 years ago
Lyons Company deducts insurance expense of $210,000 for tax purposes in 2021, but the expense is not yet recognized for accounti
Goryan [66]

Answer:

$42,000

Explanation:

Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.

Insurance expense of $210,000

Tax rate of 20%

( $210,000 × .20 )

=$42,000

Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000

6 0
3 years ago
Item 1 Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of
Lera25 [3.4K]

Answer:

Gross pay= $13,357.8

Explanation:

Giving the following information:

Gross commission= 3%

Sales= $445,260

<u>The gross pay is the amount earned before tax and other deductions. We need to use the following formula:</u>

Gross pay= commission rate*sales

Gross pay= 0.03*445,260

Gross pay= $13,357.8

7 0
3 years ago
The following statement(s) regarding Utility Functions is/are true: Utility Functions are usually a function of wages. Utility i
jonny [76]

Answer:

Utility increases at a decreasing rate.

Explanation:

Utility is the total satisfaction derived from consumptjon.

The utility function measures the total satisfaction derived from consumptjon.

Utility increases at a decreasing rate.

This can be illustrated with an example.

Imagine I am coming from a desert with no access to drinking water. I am very thirsty. The satisfaction I would derive from the first cup of water would be the highest. After my first cup, the utility I would derive from other cups would be diminishing.

7 0
2 years ago
Which examples demonstrate common Therapeutic Services workplaces and employers? Check all that apply. Reiko owns and operates h
AleksAgata [21]

Any career in the therapeutic services pathway is someone that is working hands on with a patient and is working to improve the overall health status of the patient.

<h3>Therapeutic Services workplaces </h3>

Correct options are A, C and F

"Reiko owns and operates her own private chiropractic practice, Harmony assists with surgeries in a nonprofit community hospital and Ian helps patients with basic tasks in their own homes" are the examples of demonstrate common Therapeutic Services workplaces and employers.

Careers in Therapeutic Services are focused on improving the health of patients over time through direct care, treatment, counseling or health education. Many of these careers require certification or additional education.

Learn more about workplaces, refer to the link:

brainly.com/question/24780768

6 0
2 years ago
Other questions:
  • Would you be interested in subscribing to 100 mbps ftth for a monthly price of $75? why or why not?
    12·1 answer
  • What can you do to help make your credit score strong?
    12·1 answer
  • Coronado Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigne
    15·1 answer
  • Assume a $170,000 investment and the following cash flows for two products: Year Product X Product Y 1 $ 40,000 $ 60,000 2 60,00
    14·1 answer
  • How have powerful economic interests captured state power and fashioned economic trade policy to further their interests through
    6·1 answer
  • The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $202,000. During 2016, the company had revenues
    11·1 answer
  • Wiley's has total equity of $679,400, long-term debt of $316,900, net working capital of $31,600, and total assets of $1,123,900
    11·1 answer
  • The purposes of the statement of cash flows are to A. predict future cash flows. B. evaluate management decisions. C. determine
    11·1 answer
  • A wholesale distributor of cleaning products is thinking about buying 200 more cases of a floor cleaning compound than she norma
    12·1 answer
  • starskeep, inc., is a fast-growing technology company. the firm projects a rapid growth of 40 percent for the next two years and
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!