Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swells attorney advises that

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Swell Company has a lawsuit pending from a customer claiming damages of

$100,000. Swell’s attorney advises that the likelihood the customer will win is remote.

GAAP requires at a minimum that this contingent liability be

a. disclosed in the footnotes.

b. disclosed in the footnotes, with ranges of potential loss.

c. recorded as a journal entry, as well as disclosed in the footnotes.

d. No disclosure is required.

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Related Book For answer-question

Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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Question Posted: Feb 02, 2024 05:01 AM

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Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swells attorney advises that

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d No ...View the full answer

Horngrens Financial And Managerial Accounting The Managerial Chapters

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