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SVETLANKA909090 [29]
3 years ago
5

A contingent liability: multiple choice is only remotely possible. cannot be estimated. will result from a future event. is a po

tential liability that has arisen because of a past event or transaction. will only result when a remote event becomes probable. is remotely estimable and probable
Business
1 answer:
garik1379 [7]3 years ago
4 0

Answer:

is a potential liability that has arisen because of a past event or transaction.

Explanation:

A contingent liability is a potential liability that has arisen because of a past event or transaction.

Some of the characteristics of contingent liabilities includes being remote, probable, estimable, and reasonably possible.

In order to record a contingent liability as a liability on a company's balance sheet, it must be probable (likely to occur) and subject to estimate.

Hence, companies are advised to record the contingent liabilities so as to meet the Generally Accepted Accounting Principles (GAAP) and IFRS requirements.

You might be interested in
Assume that in 2015, the first edition of a comic book was sold at auction for $1,920,000. the comic book was originally sold in
alina1380 [7]
Let
x------------------- > cost comic book sold in 1942--------------> <span>$1,920,000
</span>y------------------- > cost comic book sold in 2015--------------> $0.09
t------------------ > time---------------> (2015-1942)= 73 years
z-----------------> average increase per year

we know that
<span>z={[(x-y)/y]/t}*100
</span>then

z={[(1920000-0.09)/0.09]/73}*100=29,223,743 %

the answer is 29,223,743 %



4 0
3 years ago
An oligopoly exists when there is a lot of variety in the number of sellers and producers of media content, but not much variety
Alex73 [517]

An oligopoly does not exist when there is a lot of variety in the number of sellers and producers of media content.

What is an oligopoly-

An Oligopoly is a type of market in which :

  • Few numbers of buyers and sellers.
  • High capital cost to entry in the market.
  • Similar but slightly different products. (eg. Cold drink companies)
  • Entry may be restricted to a few firms
  • there can be informal cartels within the existing firms which do not allow others to come in.
  • The action of one firm has an effect on the whole market, this will leads to a prisoner's dilemma.

An example of an oligopoly market is - the Organisation of petroleum exporting countries(OPEC).

Disclaimer- The Question is incomplete the question may be "An oligopoly exists when there is a lot of variety in the number of sellers and producers of media content, but not much variety in what they actually produce. Is this statement true or false?"

To learn more about the types of markets please click on the link

brainly.com/question/24877850

#SPJ1

5 0
2 years ago
Uber plans to sell shares of common stock to raise capital funds. They estimate that each share of common stock will sell for $1
blsea [12.9K]

Answer:

cost of capital of common stock = 13.38 %

Explanation:

given data

common stock sell = $145

fee charge= 5%

face value = $145 per share

dividend = 7%

growth rate = 8%

to find out

Uber cost of capital of common stock

solution

we get here cost of capital of  common stock that is express as

cost of capital of common stock = \frac{D1}{Po-f} + g    ....................1

here D1 is dividend at end year and Po is today price and f is flotation rate and g is growth rate

so we get here

cost of capital of common stock = \frac{113*0.05}{113-113*0.07} + 0.08    

cost of capital of common stock = 0.133763

cost of capital of common stock = 13.38 %

4 0
3 years ago
Burke Tires just paid a dividend of D0 = $2.25. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year
andrew11 [14]

Answer:

c. $76.48

Explanation:

The value of the stock is the present value of future cash flows

First, calculate each year's dividend

First year dividend = D1 = D0 x ( 1 + first year growth rate ) = $2.25 x ( 1 + 30% ) = $2.925

Second year dividend = D2 = D1 x ( 1 + Second year growth rate ) = $2.925 x ( 1 + 10% ) = $3.2175

Second year dividend = D3 = D2 x ( 1 + Second year growth rate ) = $3.2175 x ( 1 + 5% ) = $3.378375

Now calculate the present value of each year's dividend

Present value of D1 = D1 / ( 1 + required return )^1 = $2.925 / ( 1 + 9.00% )^1 = $2.6834

Present value of D2 = D2 / ( 1 + required return )^2 = $3.2175 / ( 1 + 9.00% )^2 = $2.7081

Present value of D3 = [ D3 / ( Required return - Growth rate ) ] / ( 1 + required return )^2 = [ $3.378375 / ( 9.00% - 5.00% ) ] / ( 1 + 9.00% )^2 = $71.0878

Now take the sum of the present value of all the dividends to calculate the value of stock

Value of Stock = Sum of Present value of all dividend = Present value of D1 + Present value of D2 + Present value of D3 = $2.6834 + $2.7081 + $71.0878

Value of Stock = $76.4793

Value of Stock = $76.48

4 0
3 years ago
A coal mine cost $1,003,000 and is estimated to hold 50,000 tons of coal. There is no residual value. During the first year of o
avanturin [10]

Answer:

The answer is $120, 360

Explanation:

Depletion is the allocation of cost to an accounting period as units of a natural resource are mined or consumed.

The formula for calculating depletion per unit is depletion per unit is:

the number of consumed units of the natural resources x the cost per unit.

Total cost is $1,003,000

Unit consumed per unit is

6,000 tons ÷  50,000 tons

0.12

Therefore, depletion per unit is

$1,003,000 x 0.12

=$120, 360

5 0
4 years ago
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