Question: 1. A certain contingent liability was evaluated at year-end, and considered to have a reasonable possibility of becoming an actual liability. If the accountant decided

A certain contingent liability was evaluated at year-end, and considered to have a reasonable possibility of becoming an actual liability. If the accountant decided not to report it in the notes to the financial statement, what effect would this have on the financial reporting of the company?

Answers:	The net income of the company would be understated.
	The information about the transaction would be inadequately disclosed in the notes.
	The liabilities on the balance sheet would be understated.
	There would be no effect.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Suppose Angelica opens a small store near campus, selling beef brisket sandwiches. Use the graph below, which shows the demand and cost for Angelica's beef brisket sandwiches, to answer the following...

1. A certain contingent liability was evaluated at year-end, and considered to have a reasonable possibility of becoming an actual liability. If the accountant decided not to report it in the notes...

1. What is your question? fx B I x, x A certain contingent liability was evaluated at year-end, and considered to have a reasonable possibility of becoming an actual lability. If the accountant...

1. A certain contingent liability was evaluated at year-end, and considered to have a remote possibility of becoming an actual liability. If the accountant decided not to report it on the balance...

Under both the allowance method and the direct-write off method of accounting for uncollectible accounts, the amount of bad debts expense is to be estimated at the end of each accounting period. True...

A certain contingent liability was evaluated at year-end; the company felt it was probable that it would become an actual liability, and the amount could be reasonably estimated. If the accountant...

16) A certain contingent liability was evaluated at year-end; the company felt it was probable that it would become an actual liability, and the amount could be reasonably estimated. If the...

1 pts A contingency was evaluated at year-end and considered to have a reasonable possibility of becoming an actual liability. If this was not reported in the notes to the financial statements, what...

true or false....A certain contingent liability was evaluated at year end; and considered to have a reasonable possibility of becoming an actual liability. if the accountant decided not to report it...

Please help with these questions they are for my accounting test. Thank you!! Question: 1. The reason investors buy bonds is to _______. a) exercise voting rights in a company b) own controlling...

1. The reason investors buy bonds is to _______. a) exercise voting rights in a company b) own controlling interest in the company c) receive dividend payments d) earn interest 2. The following...

An engineering student has only 30 minutes before the final exam in statics and dynamics. He wants to get help solving a type of problem that he knows will be on the test from the professor's review...

Suppose that a simple economy produces pizza, video games, and candy. The following table gives quantities and prices for each good in three successive years: a. Calculate GDP in 2010, 2011, and...

1. SQL stands for ___________________. a. Select Query Language b. Semi-Quick Language c. Structured Quick Language d. Structured Query Language

Explain stakeholders involvement with widely varying needs in the practical application of transformers.

Consider 1410798885 number as a decimal number. Convert this decimal number into a binary number and find out the 1\\\'s and 2\\\'s complement of this binary number.

To get an overview of the data, we will first do univariate From 1962 to 1969 a number of patients with liver cirrhosis at analyses of the effects of the covariates treatment, sex, age several...

Question: Suppose that an investor is holding an equity portfolio that is worth $800,000 and has a beta of 1.1 from which the expected return is 12% per annum. The investor would like to purchase...

Can Abigail and Alexander Afford This Home Using the Installment Debt Loan Criterion? Next week, your friends Abigail and Alexander want to apply to the Third Universal Bank for a mortgage loan. They...

How do emotions in the workplace influence conflict?

1. Background knowledge of the subject and

4. What specific changes in the environment have taken place in relation to the information we have collected?

2. The purpose of the acquisition of the information.