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mestny [16]
3 years ago
13

Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in Dece

mber 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.8 million. The fiscal year ends on December 31. Should this contingent liability be reported, disclosed in a note only, or neither?
Business
1 answer:
Angelina_Jolie [31]3 years ago
4 0

Answer:

Yes

Explanation:

Since in the question it is mentioned that the product recall is probable and predicted that the cost to the company is $2.8 million so this represent the contingent liability as it is probable & estimated

So the same should be disclosed and reported

Hence, the answer should be yes

The same is to considered relevant

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ch4aika [34]
To find 20% of the value of the goods,
1,123 x 20% (this is the same as 1,123 x 0.2)
= 224.6

Add the salary and the commission,
425.00 + 224.6
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4 0
3 years ago
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The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is
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8 0
4 years ago
In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos
musickatia [10]

Answer: $2500

Explanation:

From the question,

Average variable cost(AVC) = $50

Average total cost (ATC) = $75

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Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

AFC = $25

We should note that:

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TFC = AFC × Q

TFC = $25 × 100

TFC = $2500

Therefore, total fixed cost is $2500

5 0
3 years ago
2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take
Colt1911 [192]

Answer: At the age of 65 the money will be $90337.5

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Note 65years-22 years = 43 years

$5×365= $1825

$1825×10%=$182.5

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$2007.5×43= $90337.5

8 0
4 years ago
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antiseptic1488 [7]

Answer:

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3 years ago
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