Question: Your house is currently under construction through a cheap deal you have closed with your engineer best friend. Due to the cheapness of the

Your house is currently under construction through a cheap deal you have

Your house is currently under construction through a cheap deal you have closed with your engineer best friend. Due to the cheapness of the deal, your friend chose not to install safety nets anymore, exposing your neighbors to apparent danger. One morning, a hollow block fell from the construction and hit your neighbor's daughter, causing them to sue you in court. Your lawyers told you that while they will try hard to win the case, you must also expect to pay damages to the daughter amounting P300,000. However, your lawyers tell you that the judge may not be able to reach to a court decision for at least two years. What concepts or principles in the Conceptual Framework might help you in the proper accounting for this?

Step by Step Solution

★★★★★

3.42 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The concepts or principles in the Conceptual Framework that might help you in the proper account... View full answer

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!

Lime is a term that includes calcium oxide (CaO, also called quicklime) and calcium hydroxide [Ca(OH)2, also called slaked lime]. It is used in the steel industry to remove acidic impurities, in...

QUESTION 25 Information literacy is a term that best applies to: A. College students learning to improve their research skills B. Lifelong learners in any number of learning situations c. Librarians...

Calcium oxide (quicklime) reacts with water to produce calcium hydroxide (slaked lime). CaO(s) + H2O(l ) Ca(OH)2(s); H = 65.2 kJ The heat released by this reaction is sufficient to ignite paper. How...

Emma Emerson is a proud woman with a problem. Her daughter has been accepted into a prestigious law school. While Ms. Emerson beams with pride, she is worried sick about how to pay for the school;...

In 1993, Victoria Lisa Alberty-Velez (Alberty) began to cohost a new television show, Desde Mi Pueblo, on WIPR, a television station in Puerto Rico. The show profiled Puerto Rican cities and towns....

A company manufactures stamped steel products. With global competition increasing, the company is looking at options for it to be in a more competitive position. There are three possible market...

Thanks for the training! Divide into two groups, and prepare arguments for and against the following behavior: You work in the IT department of a large international company. At your annual...

Bill Fremont, division controller and CMA, was upset by a recent memo he received from the divisional manager, Steve Preston. Bill was scheduled to present the divisions financial performance at...

Ruth Swazey, divisional controller and certified management accountant, was upset by a recent memo she received from the divisional manager, Paul Chesser. Ruth was scheduled to present the divisions...

Replacement Decisions Suppose we are thinking about replacing an old computer with a new one. The old one cost us $360,000; the new one will cost $730,000. The new machine will be depreciated...

D. Lawrance designs and manufactures fashionable mens clothing. For the coming year, the company has scheduled production of 40,000 suede jackets. Budgeted costs for this product are as follows: The...

What are the three categories into which inflows and outflows of cash are divided? Be sure to describe what is included in each of these three categories.

Disclosure of Accounting Policies Which of the following should be disclosed in the Summary of Significant Accounting Policies? a . methods of amortizing intangibles b . composition of plant assets c...

A 2 cm plastic ball with a specific gravity of 1.2 is released from rest in water at 20C. Find the time and distance needed to achieve 99% of the terminal velocity. Write out the equation of motion...

Give a pseudocode description of an insertion into a hash table that uses quadratic probing to resolve collisions, assuming we also use the trick of replacing deleted entries with a special available...

Refer to the Baseball 2018 data, which reports information on the 2018 Major League Baseball season. Let attendance be the dependent variable and total team salary be the independent variable....

When looking up values for density, absolute viscosity, and kinematic viscosity, which statement is most true for both liquids and gases? a. All three of these properties vary with temperature b. All...

The temperature in a car parked in the sun can approach 100C when the outside air temperature is just 25C, and it is desirable to ventilate the parked car to avoid such high temperatures. However,...

ryptophan hydrolysis results in Multiple Choice a rise in pH. the clearing of tryptophan agar. the production of glycerol. the production of indole

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Multiple choice questions in file.{ tf1\ansi\ansicpg1252\cocoartf949\cocoasubrtf540{\fonttbl\f0\froman\fcharset0 Times-Roman;}{\colortbl; ed255\green255\blue255; ed61\green61\blue61;...

please help me with this assignment I need to identify the issue, specify the IDEA principle it pertains to, state the rule, and provide a brief conclusion. STATE OF MAINE SPECIAL EDUCATION DUE...

Hi, I am doing a project for derivatives class and I have some questions about a regression and Monte Carlo simulation that I need to come up with. So the goal is to hedge against CDS instruments by...

From the attached article: 1) Introduction - Describe the case. What happened? When did that happen? Who got involved? 2) Identify the link between the case and global market changes?...

QUESTION DLW is a company that builds innovative, environmentally friendly houses. DLW?s houses use high quality materials and the unique patented energy saving technology used in the houses has been...