Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
Answer:
Explanation:
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Answer:
Price of stock = $55.08
Explanation:
The price of a stock is the present value of the future dividends discounted at the required rate of return.
P = D/(r-g)
<em>P-price of stock today, D- Dividend in year's time, r- required rate of return,</em>
<em>g- growth rate in dividend</em>
Using the following parameters:
P =?, r- 11%, g- 5.1%
P = 3.25/(0.11-0.051)
P = 55.08474576
Price of stock = $55.08
Answer: True.
Explanation:
Process goals are conscious steps taken to achieve a desirable outcome for an organization. The process goal is also focused on the process used to get to the goal and not just the desired outcome alone. Therefore if an increased investment in staffing yields an increased financial return, it is an example of process goal.
Answer:
The retained earnings statement showed a closing retained earnings of $226,120.00 as at 2017 year end.
Explanation:
In arriving at the closing retained earnings , I treated prior items retrospectively- that is as if the impact of such items have been in the accounts from day one,less the tax effect of all items involved.
For instance ,I deducted the understatement of depreciation in 2015 less of tax impact of 40%
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