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.
<span>FALSE. The trainer should write notes as Bullet points to ensure nothing is skipped and he/she stays on task. Star the most important bullet points to be sure each trainee understands what is being taught. Notes could also include hand out sheets to give to trainees.</span>
Answer:
d. $7,000.
Explanation:
The computation of the loss recorded due to asset impairment is shown below:
= Book value - fair value
= $35,000 - $28,000
= $7,000
If we consider the building and the patent we see that the estimated cash flows are more than the book value, so no loss on impairment should be taken place
Therefore, only $7,000 should be recorded as a loss on impairment of the asset
Answer:
$6516
Explanation:
LIFO means last in, first out. It means that it is the last purchased inventory that is sold first.
Total sales in the month was 362 units, this would be taken from the inventory purchased during the month
= 362 x $18 = $6,516
