A company is facing a lawsuit from a customer. It is possible, but not probable, that the
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A company is facing a lawsuit from a customer. It is possible, but not probable, that the company will have to pay a settlement that management estimates to be $2,000,000. How would this fact be reported in the financial statements to be issued at the end of the current month?
a. $2,000,000 in the Current Liability section.
b. $2,000,000 in the Long-Term Liability section.
c. In a descriptive narrative in the footnote section.
d. None because disclosure is not required.
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Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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