Answer:
1. The loss contingency should be accrued
2.$5,000,000
3. $5,000,000
4. loss- product recall $5,000,000
liability- product recall $5,000,000
Explanation:
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $5.0 million. The fiscal year ends on December 31.
from the question we can deduce that:
1. This is a loss contingency and should be accrued because of the liability. The if the event will occur and the estimate is certain
2) loss: $5,000,000
3) liability: $5,000,000
4) loss- product recall $5,000,000
liability- product recall $5,000,000
a disclosure note is needed
Answer:
A. Consumer staple stocks rise on expectations that consumers will continue to spend on necessities.
Explanation:
Recession refers to the contraction which occurs in the business cycle when the economic activities experience a decline. When the economy experiences a decline for at least six months, a recession occurs. During the period of recession, because of unemployment, the rate of growth decreases. The consumers stop to spend which affects the economy of the business.
Answer:
a) What amount must Marla earn in the new city to maintain her current buying power?
$54000
If Marla accepts the new job, will her buying power increase?
Yes increase in $2000
Explanation:
Earn Offer
50000 56000
8%
4000
54000 56000
2000
Answer and Explanation:
(A) In the event that U1 = C1 and U2 = C2,
at that point two get both same utility C1 must equal to C2
C1 + C2 = 90
substituting C1 in the place of C2 in the above equation we get
2C1 = 90
C1 = 90/2
C1 = 45
C2 = 45
Each one has utility = 45
(B) U1 = U2
C1(c1/c2) = c1*c2
c1 = c2^2
c1 + c2 = 90
substituting c1 = c2^2 in c1 + c2 = 90
c2^2 + c2 = 90
c2 = 9
c1 = 81
U1 = U2 = 981 = 729
(C) U1 = u2
(C1 - 5)({c1 - 5}/{c2 + 5}) = (c1 - 5)(c2 + 5)
C1 - 5 = (c2 + 5)^2
C1 - 5 = c2^2 + 25 + 10c2
C1 = c2^2 + 30 + 10c2
90 = c2^2 + 30 + 10c2 + c2
0 = c2^2 - 60 + 11c2
C2 = 4,-15
-15 not possible C2 = 4
C1 = 90 - 4 = 86
U1 = U2 = 729
(D) Due to satisfy their principle, gift decrease the consumption of individual 2 by same amount and Increase consumption of individual 1 by same amount.
