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mario62 [17]
3 years ago
10

A contingent liability should be recorded in a company's financial statements only if the likelihood of a loss occurring is_____

_____.
a. At least reasonably possible and the amount of the loss is known.
b. At least remotely possible and the amount of the loss is known.
c. At least reasonably possible and the amount of the loss is reasonably estimable.
d. Probable and the amount of the loss can be reasonably estimated.
Business
1 answer:
Grace [21]3 years ago
5 0

Answer: Option D

Explanation: In simple words, contingent liability refers to those liabilities the arise of which depends on some event that may or may not happen in the future. Potential lawsuits and warranties on products sold are some of the many examples of contingent liabilities.

These liabilities are recorded so that the firm can make suitable reserves and funds in advance to  tackle thee liabilities but they are only recorded when the amount of loss can be reasonably estimated and it is probable that liability will arise.

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Erosion can best be explained as the:
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Answer:

A. loss of current sales due to a new project being implemented.

Explanation:

In business, erosion takes place when a new product or project competes with another product or project from the came company. This "internal" competition reduces the revenues and benefits from existing products or projects. It is basically a form of business cannibalization, where the left arm takes away from the right arm. E.g. newer smartphone models decrease the sales revenue from existing (older) models.

8 0
3 years ago
The Ziltech Consulting Group reported net income of $1,000,000 for its fiscal year ended December 31, 2021. In addition, during
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Answer:

$1,240,000

Explanation:

Given that,

Net income = $1,000,000

Pretax foreign currency translation adjustment = $400,000

Unrealized pretax loss on debt securities = $80,000

Effective tax rate = 25%

Total other comprehensive income:

= Foreign currency translation adjustment - Loss on debt securities

= [$400,000 × (1 - 25%)] - [$80,000 × (1 - 25%)]

= ($400,000 × 0.75) - ($80,000 × 0.75)

= $300,000 - $60,000

= $240,000

Comprehensive income:

= Net income + Total other comprehensive income

= $1,000,000 + $240,000

= $1,240,000

7 0
3 years ago
Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a
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You are a rookie police officer and are riding with a Field Training Officer (FTO). During your shift the FTO stops at a conveni
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Answer:

I will report the Field Training Officer to the higher authority.

Explanation:

If I was rookie police officer and are riding with a Field Training Officer (FTO) and he was drinking while on duty, I would report it, because he is endangering my life and his and others around us. It is important to note that irrespective of previous evaluation or submission made on me by the FTO, it is unethical for any trained police officer to take any amount of alcoholic drinks while on duty. Because when someone is under the influence of beers, he/she does not function effectively and may act abnormally.

7 0
3 years ago
Which of the following are considered to be forms of 'bundled payments'? Select all that apply. Group of answer choices Pay-for-
ehidna [41]

Answer:

Capitation

Fee for service

Explanation:

Bundled payment provide a single payment to hospitals, doctor, physician, and other providers (for home care, lab, medical equipment, etc.) for a defined episode of care. It is described as "a middle channel" between fee-for-service reimbursement (that allows providers to be paid for each service they render to a patient) and Capitation (that allows for providers to be paid a "lump sum" per patient not regarding how many services the patient receives), given the risk is shared between payer and provider. Bundled payments was proposed in the health care reform debate of the United States as a strategy for reducing health care costs, especially during the Obama administration.

8 0
3 years ago
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