9.3-*PLEASE ANSWER ALL 5 QUESTIONS*

5 multiple choice questions.

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Multiple Choice recognize a liability only. recognize an expense only. recognize a liability and an expense in its financial statements. disclose but not recognize the liability or the expense. Il lawsuits in which a company has been named a defendant should be either disclosed in the company's notes to the financial statements, or recognized as a liability on its balance shee True or False bligation from the suit is remote. What should Burger Barn do as a result of the information that is available? Multiple Choice Disclose the lawsuit in the notes to the financial statements Recognize a \$5 million liability on its balance sheet for the contingency Ignore the lawsuit in its financial statements Settle with the customer immediately for $5 million to avoid harmful publicity nder what condition should a pending lawsuit be recognized as a liability on a company's balance sheet? Multiple Choice The amount can be reasonably estimated. The outcome is probable. The outcome is reasonably possible. The outcome is probable and can be reasonably estimated. 1,001,700 settlement fee. Generally Accepted Accounting Principles (GAAP): Multiple Choice require only PhilCo to disclose the suit but does not require the company to show the amount of the settlement as a liability. require PhilCo to recognize a 1,001,700 contingent liability and GreyCo to recognize a 1,001,700 contingent asset. require neither PhilCo nor GreyCo to disclose this information in their financial statements. require PhilCo to recognize a 1,001,700 contingent liability but does not permit GreyCo to recognize a 1,001,700 contingent asset