Which one of the following correctly describes the circumstances in which a contingent liability should be recognized
Question:
Which one of the following correctly describes the circumstances in which a contingent liability should be recognized as a liability in the financial statements?
a. The chance of the future event occurring is remote.
b. The chance of the future event occurring is possible.
c. The chance of the future event occurring is probable.
d. The chance of the future event occurring is slight.
e. The chance of the future event occurring is more likely than not.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (20 reviews)
The correct answer is C Probable me...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Question Posted:
Students also viewed these Accounting questions
-
In determining if a contingent liability should be recognized or not on the balance sheet at the report date, management must decide if there is a present obligation or a contingent obligation or...
-
Which one of the following correctly describes controlling in a management accounting context? a. Deciding on the acquisition of long-term assets b. The real-time, day-to-day decision making in a...
-
Which one of the following statements best explains why companies want to distinguish between direct and indirect costs? a. To evaluate business segments on the basis of only those costs directly...
-
ABC Client Preliminary Analytics - PBC Trial Balance December 31, 2019 Scope: Performance Materiality $210,000 and 10% 12/31/19 Balance 12/31/18 Account Class Balance Variance * Varlance Cash...
-
The degrees of operating leverage for Delta Corp. and Epsilon Co. are 1.4 and 5.6, respectively. Both have operating incomes of $50,000. Determine their respective contribution margin s.
-
A cylinder containing R-134a at 60 F, 30 lbf/in .2 has an initial volume of 1 ft 3 .Apiston compresses the R-134a in a reversible isothermal process until it reaches the saturated vapor state....
-
How do mandated benefits affect labor market outcomes? Why do these outcomes differ from those resulting from a payroll tax? What is the deadweight loss arising from mandated benefits?
-
Marotta Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2010, the first year of operations, Marotta produced 4,000 tons of plastic and sold...
-
You have been offered a job by the Boulder Dry Company . The director of HR has asked you to singe a two page contract . What provisions seen totally unrelated to the main purpose?
-
Decide whether each subset of R3 is linearly dependent or linearly independent. (a) (b) (c) (d) 4 3 5 277 104 00-I 221 4 5 20 990
-
Shiraz Company invested $12,100 in a mutual fund on August 1. By December 31, the value of the mutual fund had declined to $8,800, and the company did not sell any portion of the mutual fund during...
-
Which one of the following statements is correct? a. When there is significant uncertainty about whether an expenditure should be capitalized or expensed, capitalize it. b. When there is significant...
-
Kukenberger Inc., reported the following in its portfolio of SAS: Required 1. Determine the economic return from investing ratio for 2018, 2019, and 2020.2. What do your results suggest about...
-
(3 marks)A diffraction grating has 700slits/cm. When blue light (A = 480 nm) is directed through the grating, what will be the separation of the dark fringes on a screen 4.00 m away?
-
1. A nurse who has been an LPN/LVN for 10 years is meeting with an advisor to discuss thepossibility of taking classes to become an RN. The advisor interprets which statement by thenurse as the...
-
Name and explain 2 advantages of having a liquidated damages clause in the contract.
-
1. A nursing student is learning about effective time management in her first semester of nursing school. Which action by the student indicates that she understands the first critical step? a.Setting...
-
1.a) (4 marks)An oil slick 122 nm thick (n = 1.4), lying on water, is illuminated by white light incident, perpendicular to its surface. What color will the oil appear and calculate the wavelength.
-
Figure 2.26 shows three loads connected in parallel across a \(1000-\mathrm{V}\) (RMS), 60-Hz single-phase source. Load 1: Inductive load, \(125 \mathrm{kVA}, 0.28 \mathrm{PF}\) lagging. Load 2:...
-
The Adjusted Trial Balance columns of a 10-column work sheet for Webber Co. follow. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by...
-
A gaseous fluorinated methane compound has a density of 8.0 g L 1 at 2.81 atm and 300. K. (a) What is the molar mass of the compound? (b) What is the formula of the compound if it is composed solely...
-
A finance company is using the following "Money by Mail" offer. Calculate the yearly nominal IRR received by the company if a customer chooses the loan of $2000 and accepts the credit insurance (Life...
-
A finance company is using the "Money by Mail" offer shown in Problem 7-43. Calculate the yearly nominal IRR received by the company if a customer chooses the $3000 loan but declines the credit...
-
In his will, Frank's uncle has given Frank the choice between two alternatives: Alternative 1$2000 cash Alternative 2$150 cash now plus $100 per month for 20 months beginning the first day of next...
-
For this problem, consider a model of the hydrogen atom where the "atom" is an electron confined to be in a one-dimensional box. Take the length of the box, L, to be twice the Bohr radius ao. The...
-
Two blocks are stacked on top of one another (7 kg and 12 kg). A 50 N force is applied to the bottom block. There is 8 N of friction between the bottom block and the desk. Show a free body diagram...
-
2) A load of bricks with mass m = 15.0 kg hangs from one end of a rope that passes over a massless, frictionless pulley. A counterweight of mass m2 = 28.0 kg is suspended from the other end of the...
Study smarter with the SolutionInn App