Question: A contingent liability is OA) shown in the long-term liability section of the balance sheet. O B) a potential liability, and is journalized if the

A contingent liability is OA) shown in the long-term liability section of the balance sheet. O B) a potential liability, and is journalized if the liability is both probable and the amount can be reasonably etimated. OC) C) a potential liability, and is not journalized until the liability becomes certain. OD) shown in the current liability section of the balance sheet. 27

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 Finance Questions!

Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4. There it was determined that the optimal level of advertising spending was $135,392 leading...

Which of the following statements is not true regarding the reporting of liabilities a the current portion of long - term debt is reported separately from the long - term portion debt on the balance...

71.Management has both the intent and the ability to refinance a liability maturing in four months by taking out a new loan at the due date which would not be due for several years. How would this...

Lino Corporation's liability account balances at December 31, 1993, included the following: Note payable to bank Liability under capital lease Deferred income taxes $800,000 280,000 100,000 . ....

Presented below are long-term liability items for Cullumber Company at December 31, 2020. Bonds payable, due 2022 $600,000 Lease liability 75,000 Notes payable, due 2025 85,000 Discount on bonds...

A company is involved in a lawsuit for which the contingent liability is remote. How should the liability be treated on the balance sheet? a. It should be disclosed in the notes only. b. It should...

A contingent liability is OA) a potential liability, and is journalized if the liability is both probable and the amount can be reasonably etimated. OB) a potential liability, and is not journalized...

prepare a current asset section of the balance sheet, of prepaid insurance 200, accrued salries 150, patty cash ?, investment in trading securitues 1200, total current assetes 4560, cash 600,...

Looking at the heading of the Consolidated Statement of Equity for Ford Motor Company and its Subsidiaries. 1. The heading of the statement is not quite clear. You may need to refer to the text. What...

Questions Rob Thomas, the controller of Match Rex 20 (Match), has a disease (in other words, he is unwell) and won't be able to report for work today. In his absence, you (the assistant controller)...

Equity Attributable to Ford Motor Company Cap.In Excess of Par Value of Stock 521,421 Capital Stock 5 41 Retained Earnings Accumulated Deficiti $ 149 4.589 Equity Attributable to Non controlling...

1. Evaluate the current yield (CY) and yield-to-maturity (YTM) on 8-year and 10 percent annual rate coupon bond, having face value of $4,000 and selling initially (at the bonds issuance date) for...

Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price...

Metlock Engineering Corporation purchased conveyor equipment with a list price of $ 9 , 2 0 0 . Presented below are three independent cases related to the equipment. a . Metlock paid cash for the...

A project manager has compiled a list of major activities that will be required to install a new computer system. The duration of each activity can be reduced by a maximum of two weeks. The crashing...

LO32.7 (Appendix) Identify how the aggregate demand curve relates to the aggregate expenditures model.

2. Using the consumption and saving data in problem 1 and assuming investment is $16 billion, what are saving and planned investment at the $380 billion level of domestic output? What are saving and...

LO32.4 Explain the factors that cause changes (shifts) in AS.