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;
- Loss must be probable
- 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.
Answer:
E. I, II, and IV only
Explanation:
Six sigma is a management technique that involves measuring the number of defective products resulting from production activities, and carefully undergoing certain processes to reduce these defects and improve quality.
The DMAIC cycle is an important process when using the six sigma technique. It involves;
• Defining the goals and objectives to be achieved and problems to be fixed.
• Measuring the production process to see how it currently performs and gathering data on defective products.
• Analysing the processes to find root causes of problems and possible causes of defects.
• Improving the process by implementing carefully formed plans which will help reduce defects.
• Controlling how the new processes are implemented to yield and sustain favorable results and deliver value to customers.
Six sigma aims to remove variations from business processes to reduce product defects and improve quality.
Answer:
<em>Economic growth refers to a steady increase in the production of goods and services in an economic system.</em><em> </em><em><u>True</u></em>
Answer:
A. The demand curve shifts to the left
Explanation:
Bread and butter are compliment goods. They offer the consumer a high utility when consumed together. An increase in demand for bread will increase the demand for butter. Changes in the price of bread will affect the demand for butter.
An increase in the price of bread leads to a decrease in demand. Reduction in bread demand means that butter consumption will decline as there will be less bread to apply butter. A decrease in demand will prompt the demand curve to shift inwards.
