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forsale [732]
3 years ago
9

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 $2 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued
Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer:

Sound Audio

Yes.  This loss should be accrued.

Explanation:

Accruing the loss contingency gives the readers of the financial statements an early warning of the probable existence of a future loss.  A loss contingency arises from a probable future event, which gives rise to an adverse outcome from a lawsuit.  Since the cost of the loss can be reasonably estimated and the product recall is virtually certain, it is prudent for Sound Audio to provide for this loss in its December 2021 financial statements.

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butalik [34]

Answer:

I. Never stand still

2. Do more than is Required of you

3. Think as a team Member, Not an Employee

4 Speak up and share your ideas

5 Fake it till you make it

6. Consider every opportunity

7. Always be prepared

8. Be Self-Pronotional

Explanation:

Hope this helps! Tell me if I'm wrong. If thai Helps Give me brainly.

5 0
3 years ago
1. Under a shipment contract, the seller is required only to the goods into the hands of a carrier and title passes to the buyer
taurus [48]

Answer:

<h2>1) The answer is option a) or True.</h2><h2>2) Generally all contracts are assumed to be <u>Shipment </u> contracts if nothing to the contrary is stated in the contract.</h2><h2>3) The seller is required to deliver the goods to a particular destination in a destination contract,usually directly to the <u>buyer</u><u>.</u></h2><h2>4) The answer is option a) or True.</h2><h2 />

Explanation:

  1. A shipment contract mandates that the seller of any good or service is obligated to deliver the specified shipment to a common carrier for delivery to the buyer but not directly to the buyer's destination.Under  the shipment contracts,the seller is not responsible for the condition of the shipment or package during the delivery point and time to the buyer.
  2. If nothing is specifically mentioned in the contract regarding the delivery of the shipment,it assumably qualifies as a shipment contract and the seller is only liable to dispatch the shipment to the transportation carrier and not obligated to send it directly to the buyer's destination.
  3. Under a destination contract,the seller is officially obligated to dispatch the concerned goods or shipment directly to the buyer's actual destination.Hence,the seller's obligation is incomplete until the shipment subsequently reaches the buyer's destination.
  4. For destination contract,at the point of delivery,the burden of risk and title associated with the condition and ownership of the specified shipment is passed onto the buyer and seller is not officially or legally liable regarding the same.
3 0
3 years ago
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc
kvasek [131]

Answer:

Dr Investment in Nursery supplies $66 million

Cr Cash $66 million

Dr Investment in Nursery supplies $7 million

Cr Investment Revenue $7 million

Dr Cash $9 million

Cr Investment in Nursery supplies $9 million

No Entry

Explanation:

Preparation of the appropriate journal entries from the purchase through the end of the year.

Dr Investment in Nursery supplies $66 million

Cr Cash $66 million

(To record purchase of 25% shares for $66 million)

Dr Investment in Nursery supplies ($28 million x 25%) $7 million

Cr Investment Revenue $7 million

(To record investor share of investee's net income)

Dr Cash (18 million shares x 25% share x $2 per share) $9 million

Cr Investment in Nursery supplies $9 million

(To record receipt of dividend)

No Entry

5 0
3 years ago
Sheffield Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were
valentina_108 [34]

Answer:

$8,495,833

Explanation:

<u>Calculation of weighted-average accumulated expenditures</u>

Date     Payments    Funds used        Annualized               Amount

Mar 1    $6450000       10/12             $6450000*10/12       $5,375,000

Jun 1    $5350000        7/12              $5350000*7/12         $3,120,833

Dec 31  $8250000       0/12              $$8250000*0/12      <u>$0                </u>

Weighted Average Expenditures                                        <u>$8,495,833</u>

6 0
3 years ago
Who is generally responsible for the materials price variance? the materials quantity variance? the labor efficiency variance?
Anna71 [15]
THE PURCHASING MANAGER is the one who is responsible for the material price variance because he is the one in charge of buying materials that are needed for production at competitive prices. THE PRODUCTION MANAGER AND THE SUPERVISORS  are the one who is responsible for the material quantity variance and the labor efficiency variance.
8 0
3 years ago
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