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Lina20 [59]
3 years ago
12

For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in

Business
1 answer:
ratelena [41]3 years ago
8 0

Answer:

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction                                                        Remark

1.  Guarantee of supplier's debt                  (c) have no disclosure

2. Damages for disgruntled employee      (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz.  But with the legal case of a disgruntled employee, Cruz should disclose the information in a note.  It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

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Answer:

Direct labor time (efficiency) variance= $2,080 unfavorable

Explanation:

Giving the following information:

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2 years ago
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3 years ago
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Senator dogood is pushing for the construction of a new military base in his state even though, from the standpoint of national
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3 years ago
Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2
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Answer:

a. 863

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