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
Bingel [31]
3 years ago
15

Ultimate Company is a defendant in a lawsuit alleging damages of $3 billion. The litigation is expected to continue for several

years, and no reasonable estimate can be made at this time of Ultimate Company's ultimate financial responsibility. This situation is an example of:
A. Off-balance-sheet financing.
B. A loss contingency which should be disclosed in notes to Ultimate Company's financial statements.
C. An estimated liability which must appear in Ultimate Company's balance sheet.
D. A loss in purchasing power caused by inflation.
Business
2 answers:
malfutka [58]3 years ago
6 0

Answer: B. A loss contingency which should be disclosed in notes to Ultimate Company's financial statements

Explanation: Ultimate company with an allege lawsuit demage of $3billion and the litigation will continue for several years, this situation is an example of "a loss contingency which should be disclosed in notes to Ultimate Company's financial statements".

A loss contingency means charge to expense for a possible future event such as an outcome of a lawsuit . A loss contingency will give the reader of a financial statements of a firm, early warnings of an impending payments of obligation.

Goshia [24]3 years ago
5 0

Answer:

Option B.

Explanation:

A loss contingency refers to a charge to expense for what is considered to be a probable future event, such as an adverse outcome of a lawsuit. A loss contingency usually gives the person who is reading an organization's financial statements an early warning of a payment which is impending, and which is related to a likely obligation.

In the scenario presented above, we can see that Ultimate Company is involved in a lawsuit and might be expected to pay $3 billion, this reflects the situation of a loss contingency which should be disclosed in notes to Ultimate Company's financial statements.

You might be interested in
Compare and contrast the U.S. Constitution and the Arizona Constitution. Discuss three findings that account for the significant
marysya [2.9K]

Development, Structure and powers of U.S constitution and Arizona constitution have a huge comparison.

<u>Explanation: </u>

Unlike the United States Constitution, which was embraced in 1787, that wasn't until 1912 that perhaps the Arizona Constitution was accepted, leading to the creation of the 48 states

The common terms,' we the people' all constitutions begin with, but include many different things. After all, there were certain differences between one condition and another for a set of fifty.

The Arizona Constitution states that the legislature must be split into three parts-Legislative, Legislative and executive–which are not applicable to the United States Constitution

Many think of forms to deny or expel someone from office. They will enforce them in both Constitutions. All define the qualifications for their office if they would like to run for office. Another connection that I found was apparent but significant nonetheless.

They both mention the theme of religious liberty, one of the most valuable values in our society. Eventually, both inspire their lawmakers to negotiate with them.

5 0
3 years ago
All of the following statements about decision style are true EXCEPTA) autocratic styles are authority-based.B) decision styles
notka56 [123]

Answer:

B. decision styles are consistent among top managers

Explanation:

Decision making styles differ between managers.  Many managers exercise autocratic style which is authoritative wherein very limited inputs from the subordinates are taken and there is little scope for constructive advises.

In heuristic style, the strategies help managers to take clear cut decisions in a prompt manner. In such a form, decisions are arrived at quickly.

Managerial decision making methods differ from manager to manager and are an outcome of managers own judgement and demeanor.

Hence it is evident from above points that decision styles are not consistent among top managers.

5 0
3 years ago
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spen
lutik1710 [3]

Answer:

$50? ($150 is not the correct answer)

Explanation:

7 0
3 years ago
What is a disadvantage of government bonds?
PolarNik [594]
The disadvantage of government bonds is that the government keeps the money
7 0
4 years ago
How are distribution and selling both connected?
Nataliya [291]

Answer:Manufacturers produce or make products. They typically sell them to wholesalers or distributors that have expertise in getting products to retailers. Retailers then hold inventory and market the goods to consumers that purchase them for personal or family consumption.

4 0
3 years ago
Other questions:
  • What is generally true-in terms of needs and wants-about families whose income is below the poverty threshold?
    6·1 answer
  • "You've been specially selected to win our grand prize. Contact us to collect it!" This is an example of a _____.
    7·2 answers
  • In which market model are the conditions of entry into the market easiest?
    11·1 answer
  • Albright Company produces a variety of products, some in labor-intensive departments and some in heavily automated departments.
    5·1 answer
  • When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags.
    9·1 answer
  • Why is that 0.8 in fractional form is 8/10​
    6·1 answer
  • Management team of Wolverine Corp. is considering the purchase of a new piece of equipment. They believe that new equipment is m
    11·1 answer
  • All of the following are automatic stabilizers, except.
    7·1 answer
  • ________ exists when a large number of firms produce goods that are similar but customers believe there is a difference.
    10·2 answers
  • A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!