Question: if a contingent liability is a reasonable probable and reasonably estimable then management should 1 ) include a explanatory paragraph in the audit report 2

if a contingent liability is a reasonable probable and reasonably estimable then management should
1) include a explanatory paragraph in the audit report
2) no action is required
3) recognize in the financial statements
4) discolve in footnotea

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!

Q:

You are part of a multinational computer, phone, laptop and hardware manufacturer. Your objective as a product analyst is to use Generative AI, and craft an effective prompt which can take an...

Q:

Financial information attached. I'm supposed to project for 2015, 2016, and 2017. I do not understand the question or how to do it. Pro-Forma Financial Statements (I/S, B/S and Statement of Cash...

Q:

Please help me find details of Target's fiscal 2018 liabilities, calculate the time-earned interest rate, and compare to Kohl's corporation if possible. If not, thank you anyway! Financial Statement...

Q:

File View Este board Business Assignment 2 Yum Brands Contingencies.214 - Word Home Insert Design Layout References Mailings Review ACROBAT Tell me Sign in % inherit - 10 AaBbCcod AaBbCcDd AaBb C...

Q:

LONG-LIVED ASSETS Refer to the notes to the financial statements.The first note, "Summary of Significant Accounting Policies," should provide information about the company's depreciation and...

Q:

LONG-LIVED ASSETS Refer to the notes to the financial statements.The first note, "Summary of Significant Accounting Policies," should provide information about the company's depreciation and...

Q:

AUDITING AND ASSURANCE SERVICES - QUESTION 12 & 13 - PLEASE AND THANK YOU! (BOTH QUESTION ANSWERS MUST BE 100-200 WORDS LONG) 12. You purchased a company's stocks and you suffered a big loss as a...

Q:

Business Assignment 2Yum! Brands, Inc.. Yum! shows three types of contingencies 1. In your own words, describe what the Lease Guarantee liability is about. How much liability did Yum! estimate for...

Q:

BESTFOOD CORPORATION: A CASE STUDY IN FRAUD AND FORENSIC ACCOUNTING LEARNING OBJECTIVES After completing and discussing this case, students should be able to: Understand the basics of accounting for...

Q:

BESTFOOD CORPORATION: A CASE STUDY IN FRAUD AND FORENSIC ACCOUNTING LEARNING OBJECTIVES After completing and discussing this case, students should be able to: Understand the basics of accounting for...

Q:

Notes to Consolidated Financial Statements (Tabular amounts in millions, except share data) Note 1 - Description of Business Yum! Brands, Inc. and its subsidiaries (collectively referred to herein as...

Q:

Buffalo Company manufactures equipment. Buffalo's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to...

Q:

In Problem S1-30, the decision analysis is for automobiles and light trucks. Alleghany Mountain Power and Light would like to reformulate the problem for its heavy construction equipment. Emergency...

Q:

Which of the following would be the primary objective of investing? Question 1 2 options: Earning the highest return possible Earning a return necessary to meet your goals Acquiring an estate...

Q:

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....