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3 years ago

Analyzing Contingent and Other Liabilities:

Business

1 answer:

miskamm [114]3 years ago

6 0

Answer:

1. Situation is that a Stockholder has filed a lawsuit against C corporation.

Accounting treatment: Neither record nor disclose any liability.

Since the liability is not at all possible, it should be neither recorded nor disclosed.

2. Situation: F signed a 60 days, 10% note when it purchased items from another company.

Account treatment: Record the liability on the balance sheet.

Real liability that is both certain and the liability amount can also be reasonably estimated. It should be recorded on the balance sheet.

3. The EPA notifies S co that a state where it has a plant is filing a lawsuit.

Account treatment: Disclose the liability in a financial statement footnote.

The liability is probable but not certain and liability amount can also be reasonably estimated. It should be disclosed in financial statement footnote.

4. Situation: Company manufactured and sold products to a retailer that later sold product to consumer.

Account treatment: Record the liability on the balance sheet.

Real liability that is both certain and the liability amount can also be reasonably estimated. It should be recorded on the balance sheet.

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Why do you think it is important to have a diverse number of careers to choose from? How would it affect our global economy if t

dem82 [27]

Because if everyone went and had the same job no one else would know how to do the other jobs causing our entire economy to fail and entire city’s failing too.

3 0

2 years ago

The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals:

Over [174]

Based on the number of people that are employed and those who are unemployed in this town, the unemployment rate is 14.4%.

<h3>What is the unemployment rate?</h3>

The unemployment rate can be found by the formula:
= Employed people / (Unemployed + Employed people)

Solving gives:

= (11,000) / (65,400 + 11,000)

= 11,000 / 76,400

= 14.4%

In conclusion, the rate is 14.4%.

Find out more on the unemployment rate at brainly.com/question/13280244.

7 0

1 year ago

Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2021, for $283,294,72

otez555 [7]

Answer:

The net amount of the liability Myriad would report in its balance sheet at December 31, 2021 is $287,524,896

Explanation:

First, we need to determine the amount of discount on the bond at the time of issuance

Discount on Bond = Face value - Issuance value = $320,000,000 - $283,294,720 = $36,705,280

June 30, 2021

Now we will use the effective interest method to calculate the amortization of discount on the bond.

Amortization of Discount = ( Carrying Value x Market yield ) - ( Face value x Coupon rate ) = ( $283,294,720 x 12% ) - ( $320,000,000 x 10% ) = $33,995,366.4 - $32,000,000 = $1,995,366.4 = $1,995,366

Carrying value = $283,294,720 + $1,995,366 = $285,290,086

December 31, 2021

Now we will use the effective interest method to calculate the amortization of discount on the bond.

Amortization of Discount = ( Carrying Value x Market yield ) - ( Face value x Coupon rate ) = ( $285,290,086 x 12% ) - ( $320,000,000 x 10% ) = $34,234,810.32 - $32,000,000 = $2,234,810.32 = $2,234,810

Carrying value = $285,290,086 + $2,234,810 = $287,524,896

5 0

2 years ago

reventive action ____________. a. realigns the performance of the project work with the project management plan b. seeks to ensu

torisob [31]

Answer:

The correct answer is letter "B": seeks to ensure the future performance of the project work is aligned with the project management plan.

Explanation:

Preventive actions are defined as those that aim to mitigate risks inherent in the operations of a business. Preventive actions lead to entities creating contingency plans that allow them to have certain strategies in front of unexpected situations that could harm the firm's operations.

<em>The project risk management plan is the reference that prevention actions take at the moment of recognizing the set of activities that should be followed to ensure the optimal future performance of a project.</em>

8 0

2 years ago

On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 4,000 units of Comfort Office Keyboard to one of its clients

Artist 52 [7]

Answer:

this contract includes 2 performance obligations

Explanation:

the performance obligations are as follows:

performance obligation 1 refers to providing 4,000 keyboards to Bionics
performance obligation 2 refers to the special discount options which could be redeemed by the client resulting in a material right. If the client had not made this purchase, then it wouldn't be entitled to the special discount.

A performance obligation is created whenever a business promises a customer that it will deliver or provide a good or service.

4 0

2 years ago