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lisov135 [29]
2 years ago
14

Star Company has a contingent liability that has a likelihood of actual occurrence that is classified as probable. Also, the amo

unt of the liability can be reasonably estimated. Under these circumstances, Star is required to
Business
1 answer:
Alexxandr [17]2 years ago
7 0

Answer:

recognize a liability and an expense in its financial statements.

Explanation:

Contingent liability refers to a liability that arises in some unpredictable future event. In this, the amount is expected or predicted.

Here in the question the actual occurrence would be categorized also its amount would be predicted so the same is to be recorded as a liability and recorded as an expense in the financial statement i.e. balance sheet & income statement

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A college of business building that has classrooms on the first floor, faculty offices on the second floor, and graduate assista
AVprozaik [17]

Answer:

<em><u>Functional </u></em>

Explanation:

<em>Function</em><em>.</em><em> </em><em>a </em><em>relationship</em><em> </em><em>in </em><em>which </em><em>f</em><em>or </em><em>every </em><em>input</em><em> </em><em>there </em><em>exactly</em><em> </em><em>one </em><em>output</em><em>.</em>

5 0
2 years ago
Below are approximate amounts related to retained earnings reported by five companies in previous years. Coca-Cola reports an in
NemiM [27]

Answer and Explanation:

The computation is shown below:

1. Amount of dividends of Coca-Cola is

=  net income - Increase in retained earnings

= $6.9 billion - $3.2 billion

= $3.7 billion

2. Amount of net income of PepsiCo is

= Increase in retained earnings + dividend paid

= $3.4 billion + $2.6 billion

= $6 billion

3. The amount of dividends of Alphabet is

=  net income - Increase in retained earnings

= $1.6 billion - $1.6 billion

= $0 billion

4. Amount of ending retained earnings of Sirius XM Satellite is

= Beginning retained earnings - net loss - dividend

= -$1.6 billion - $1 billion - $0

= -$2.6 billion

5. The amount of beginning retained earnings of Abercro is

= Ending retained earnings - net income + dividend

= $1.56 billlion - $0.43 billion + $0.06 billion

= $1.19 billion

4 0
3 years ago
Creative Sound Systems sold investments, land, and its own common stock for $39 million, $15.9 million, and $41.8 million, respe
Mnenie [13.5K]

Answer:

Creative Sound Systems should report  $15,9 million as net cash flows from financing activities.

Explanation:

Consider only items relating to financing activities.

Cash flow from  financing activities

Proceeds from Sale of common stock         $41.8 million

Purchased of treasury stock                        ( $25.9 million)

Net Cash flow from Financing Activities       $15,9 million

8 0
3 years ago
Read 2 more answers
Cost of Merchandise Sold Based on the following data, determine the cost of merchandise sold for July: Increase in estimated ret
Dvinal [7]

Answer:

$873,200

Explanation:

The computation of the cost of merchandise sold is shown below:

= Merchandise inventory, July 1  + Purchases - Purchases returns and allowances - Purchases discounts - Freight in - Merchandise inventory, July 31

= $49,300 + $985,500 - $33,500 - $19,700 - $13,800 - $94,600

= $873,200

We simply added the purchase amount and deduct all other items except Increase in estimated returns inventory to the opening balance of merchandise inventory

4 0
3 years ago
Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises and consum
OverLord2011 [107]
The scenario you described suggests that the Law of Demand is correct.

Increase in price will always lead to loss of demand, while replacements for that product will grow in demand.
4 0
3 years ago
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