Answer:
Please find the detailed explanation below.
Situation 1 and 2 have disclosure while situation 3 does not require any disclosure.
Explanation:
Situation 1. Accrual. The one-year warranty has created what is known as contingent liability. Contingent liability is a type of liability that is dependent on the outcome of some specific actions which has happened in the past. The eventual liability may or may not happen. But since the probable claim from the one-year warranty has been determined, it should be disclosed. But if the claim cannot be determined, it shouldn't be disclosed.
Situation 2. Since this contract happened before the issuance of financial statement and the amount of loss from this contract can be reasonably estimated or determined, then it must be disclosed and the likely amount must also be disclosed. This disclosure will be under 'note to the financial statement'.
Situation 3. This is a self insurance and self insurance is not an insurance. There is no contingent liability in this situation. Also, there is no accident, no injury. Hence, this is no disclosure here.
Answer:
(3) $3,750,000
Explanation:
The computation of the expect monthly sales to be as high is shown below:
Given that
Sales per month = $300,000
Royalty payments = 8% of sales
So, the expected monthly sales would be
= Sales per month ÷ Royalty payments percentage
= $300,000 ÷ 8%
= $3,750,000
We simply divided the sales per month by the royalty payment percentage i.e 8%
Answer:
a. The percentage increase per year in the winner’s check over this period was 7,73%
b. The winners prize at 2046 will be $12,975,215,98
Explanation:
a.
\sqrt[(2016-1895)]{(1390000/170)}
\sqrt[121]{8176,47}
0.0772965
b.
FC=IC*(1+0,0773)^{30}
FC=1,390,000*(1+0,0773)^{30}
Answer:
False
Explanation:
In financial accounting, statement of cash flows is a financial statement that deals with only cash and cash equivalents by presenting a summary of cash and cash equivalents leave a company and also enter the company.
The cash flow statement gives an indication of the level of cash position management by the a company, which implies the level of cash generated by the company used in settling debt obligations and paying for operating expenses by the company.
The statement of cash flows therefore reveals the effect on cash and cash equivalents of changes that occurred in the income statement and balance sheet over a period of time.
In summary, the statement of cash flows presents how cash from operating, investing, and financing activities during a specific period.
Answer:
False
Explanation:
A certificate of Deposit or CD is a deposit made into a bank for a specific time. This deposit will earn a fixed interest rate that varies upon the days the deposit is made of. The rule is: Longer the days of the deposit, longer the interest rate paid.
