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kirill115 [55]
3 years ago
12

How should a loss contingency that is reasonably possible and for which the amount can be reasonably estimated be reported

Business
1 answer:
guajiro [1.7K]3 years ago
5 0

Answer:

as a footnote in financial statements or on the balance sheet

Explanation:

A loss contingency can be defined as the situation or occurrence in which there is uncertainty about an entity but that will be resolved when a/some future situation occurs or not.

Simply put, a loss contingency can be said to be loss of an entity that can be resolved later in future by the occurrence or not of an event.

When a loss can be reasonably estimated as seen from the question, it should be written as a footnote on a financial statement or on a balance sheet.

cheers.

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John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina re
swat32

Answer:

Economy's marginal social benefit=$65

Explanation:

The economy's marginal social benefit can be calculated by getting the average of the individual marginal benefit.

This can be expressed as;

Economy's marginal social benefit=Sum of individual marginal benefit/Total number of individual's

where;

Sum of individual marginal benefit=John's marginal benefit+Nick's marginal benefit+Christina's marginal benefit=(80+50+65)=$195

Total number of individuals=3

replacing;

Economy's marginal social benefit=195/3=65

Economy's marginal social benefit=$65

7 0
3 years ago
Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comme
MrMuchimi

Answer:

Sink-Cost Fallacy

Explanation:

According to my research on studies conducted by various behaviorists, I can say that based on the information provided within the question the mental bias that describes Les's behavior is called the Sink-Cost Fallacy. This fallacy/bias refers to when an individual relentlessly continues's a behavior solely because of the resources that they have invested, either being time, money, or effort. Which in this case since, Les invested money into the drink so he does not want to waste it even though it might make him sick.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Lawler's is considering a new project. The company has a debt-equity ratio of .64. The company's cost of equity is 14.9 percent,
blondinia [14]

Answer:

Project's WACC = 12.95%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm may contain one or all of the following components - debt, preferred stock, common stock. For a firm with two components in capital structure in form of debt and equity, the WACC is calculated as follows,

WACC = wD * rD * (1+tax rate)  +  wE* rE

Where,

  • wD and wE are the weights of debt and equity in the total capital structure
  • rD and rE are the cost of each component
  • We multiply the cost of debt by 1 - tax rate to calculate the after tax cost of debt

We must first determine the weight of debt and equity in total capital structure.

A debt to equity ratio of 0.64 means 0.64 debt for every 1 dollar of equity. The total assets are made up of debt + equity. So, total assets are 0.64 + 1 = 1.64

Weight of debt = 0.64 / 1.64 = 16/41

Weight of equity = 1 / 1.64 = 25/41

WACC = 16/41 * 0.053  +  25/41 * 0.149

WACC = 0.1115 or 11.15%

The projects cost of capital is 1.8% more than the company's WACC.

So, the project's cost of capital is,

Project's WACC = 11.15% + 1.8%

Project's WACC = 12.95%

5 0
3 years ago
Zach has decided to start his own photography studio. To purchase the necessary equipment, Zach withdrew $10,000 from his saving
Serga [27]

Answer:

Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

Explanation:

opportunity cost = 3%($10,000) +8%($5,000)

                           = $300 + $400

                           = $700

Therefore, Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

   

3 0
3 years ago
Which does buying on a margin involve?
ioda
A. Traders borrowing money from their brokers.
4 0
3 years ago
Read 2 more answers
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