Answer:
Decorative Concrete
1. This contingent liability should be disclosed in a note only.
2. Decorative Concrete should not report any loss in its income statement, yet.
3. Decorative Concrete should not report any liability in its balance sheet, yet.
4. No entry should be recorded in the journal.
Explanation:
a) Data and Calculations:
Estimated loss = $1.1 and $4 million
Loss is probable but the loss cannot be reasonably estimated
b) Decorative Concrete cannot reasonably estimate the loss that may arise from the contingent liability. Therefore, it should only disclose the future event in a note to the financial statements. Accounting rules specify that Decorative Concrete should record this event as a contingent liability in its accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. At that time, a specific amount of loss will be recorded (debit) and a specific liability established (credit) in advance of the settlement. In this Decorative's case, only one condition is met.
Answer:
D) a conditional use permit.
Explanation:
A conditional use permit is a type of permit which requires the use of the discretion of the state for approval.
In this scenario, Kelly finds that her intended improvement, a veterinary clinic, is allowed by the zoning classification of her land only if she gets specific approval for that single use. This is most likely an example of a conditional use permit.
Answer:
False.
Explanation:
A networking letter can be defined as a type of cover letter or a job-hunting tool written to friends, friends of friends, or professionals in the author's job network to request assistance and support such as introductions, job leads, meetings, referrals and career advice.
Generally, it is advisable to draft and send out different networking letters to the members in your job network.
Hence, the same networking letter shouldn't be sent to every member of a job network so as to increase one's chance of getting a favorable and positive response.
Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).
Explanation:
Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.
The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.
