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2 years ago

What will a contingency note contain?

Business

1 answer:

kykrilka [37]2 years ago

4 0

Answer:

Contingencies are potential liabilities that might result because of a past event

Explanation:

Reasonably possible losses are only described in the notes and remote contingencies can be omitted entirely from financial statements.

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Debbie Brooks and Martha Tingstrom lived together. Tingstrom handled their finances. For five years, Brooks did not look at any

GaryK [48]

Answer:

Forgery refers to the crime pertaining to, alternation of legal obligation or rights in writing of another person. It is the production of the spurious work which is being considered to be genuine such as a painting, and coin. It is the action underlying imitation or forging a copy of the document, banknote, work of art and signature.

In the case, Debbie Brooks is solely responsible for the loss caused to her by the forged transaction. The fraud took place due to the recklessness of Debbie Brooks as she allowed Martha Tingstrom to handle her financial resources and accounts which in itself is a mistake. She failed to notice the transaction details promptly issued to her periodically by her bank and provided the details of such transaction to the bank within a period of 30 days. The bank is not liable as it has perform its obligation to the fullest. Therefore, it is ascertained that Debbie Brooks is solely responsible for the loss caused to her by the forged transaction made by Martha Tingstrom.

Explanation:

4 0

2 years ago

Read 2 more answers

Selected current year company information follows: Net income $ 17,753 Net sales 730,855 Total liabilities, beginning-year 101,9

Sveta_85 [38]

Answer:

6.03%

Explanation:

Calculation for the return on total assets

First step will be to find the assets at the beginning using this formula

Beginning year Assets =Beginning Total liabilities + Beginning Stockholders' equity

Let plug in the formula

Beginning year Assets=$101,932 + $216,935

Beginning year Assets=$318,867

Second step is to find the end of the year asset using this formula

End of the year assets = Ending Total liabilities + Ending Stockholders' equity

Let plug in the formula

End of the year assets=$121,201 + $148,851

End of the year assets = $270,052

Last step is to calculate for the return on total assets using this formula

Return on total assets = Net income/Average of total assets,

Let find the Total asset averages

Using this formula

Total asset averages=(Beginning year Assets+End of the year assets)/2

Let plug in the formula

Total asset averages($318,867 + $270,052)/2 Total asset averages=$588,919/2

Total asset averages= $294,459.50

Hence,

Return on total assets = Net income/Average of total assets

Return on total assets=$ 17,753/294,459.50

Return on total assets=0.0603

Return on total assets=6.03%

Therefore the return on total assets will be 6.03%

8 0

3 years ago

For long-term contracts, the cost recovery method under IFRS requires recognizing equal amounts of revenue and cost until all co

Sav [38]

Answer:

The answer is letter A. TRUE

Explanation:

Because under IFRS firms tipically use the cost recovery method iif they conclude that the percentage of completion method is not appropriate to account for a long term contract.

8 0

2 years ago

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead wa

Viefleur [7K]

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.

<h3>What does an unfavorable overhead volume variance mean?</h3>

An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the manufacturer's output was less than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.

Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company's profit will be less than expected.

To learn more about Unfavorable variance visit the link

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4 0

1 year ago

On January 1, 2018, Orangewood Industries bought a new cash register for $7,500. Orangewood plans to use the cash register for 4

masya89 [10]

Answer:

Depreciation expense for the year ended December 31, 2018 equals: $1,725

Explanation:

Orangewood uses straight-line depreciation, Depreciation Expense each year is calculated by following formula:

Depreciation Expense = (Cost of asset − Residual Value)/Useful Life

In Orangewood:

Cost of ash register is $7,500. The company plans to use the cash register for 4 years and then sell it for $600, therefore, Residual Value is $600 and Useful Life is 4 years.

Depreciation Expense each year = ($7,500-$600)/4 = $1,725

The cash register was bought on January 1, 2018. Depreciation expense for the year ended December 31, 2018 equals: $1,725

7 0

2 years ago