ZuoTi.Pro
Question

A gain contingency that is reasonably possible and for which the amount can be reasonably estimated...

A gain contingency that is reasonably possible and for which the amount can be reasonably estimated should be ________.

accrued
neither accrued nor disclosed
classified as an appropriation of retained earnings
disclosed but not accrued
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Contingent Gain disclosed but not accrued

Explanation

Contingent gain is gain which can probably occur in future in uncertain future.As per conservative principle gain is recognized only when it is earned. Contingent gain is disclosed in notes to  financial statements & it is disclosed in way that it doesn't become misleading for users of financial statement.

0 0
Add a comment
Know the answer?
Add Answer to:
A gain contingency that is reasonably possible and for which the amount can be reasonably estimated...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates...

    Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If expropriation is reasonably possible, a loss contingency should be: Multiple Choice Disclosed but not accrued as a liability. Disclosed and accrued as a liability. Accrued as liability but not disclosed. Neither accrued as a liability nor disclosed.

  • A company should accrue a loss contingency only if the likelihood that a liability has been...

    A company should accrue a loss contingency only if the likelihood that a liability has been incurred is: Multiple Choice At least reasonably possible and the amount of the loss is known. Probable and the amount of the loss can be reasonably estimated. At least reasonably possible and the amount of the loss can be reasonably estimated. More likely than not and the amount of the loss is known. Which of the following is not true about deferred revenue? Multiple...

  • If management determines the loss contingency is probable and an amount can be reasonably estimated, then...

    If management determines the loss contingency is probable and an amount can be reasonably estimated, then the company _______. - should include a note in the notes to the financial statements but need not record an entry in accounting journals - must record a liability and a related depreciation expense or loss, and disclose the relevant details of the event in the notes to the financial statements - must record an asset and a related expense or loss, and disclose...

  • Question 8 (1 point) Which of the following is a contingency that should be accrued? The...

    Question 8 (1 point) Which of the following is a contingency that should be accrued? The company is being sued and a loss is reasonably possible and reasonably estimable. O The company deducts life insurance premiums from employees' paychecks. It is probable that the company will receive $100,000 in settlement of a lawsuit. The company offers a two-year warranty and the expenses can be reasonably estimated.

  • A contingent liability that is probable and can be reasonably estimated must be I. Disclosed. a....

    A contingent liability that is probable and can be reasonably estimated must be I. Disclosed. a. b. Not disclosed. Recorded. d. Paid. 2. Suppose that Neuman Exploration Tours has filed a lawsuit against a competitor for an alleged trademark violation. At the end of the year, Neuman's attorney estimates that the company will likely win the lawsuit and be awarded between S1.5 and $2 million, with the most likely amount being S1.8 million. How much should Neuman record as a...

  • If management can estimate the amount of loss that will occur due to litigation against the...

    If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is reasonably possibile, a contingent liability should be Multiple Choice Disclosed, but not reported alability Disclosed and repored as a liability. Nother disclosed nor reported as alty Reportadas a latitty, but not disclosed

  • PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise 13-17 (Algo) Contingency;...

    PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise 13-17 (Algo) Contingency; product recall (LO13-5, 13-6] Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain estimated to cost the company $6.0 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be...

  • There is a possibility of a safety hazard for a manufactured product. As yet, no claim...

    There is a possibility of a safety hazard for a manufactured product. As yet, no claim has been made for damages, though there is a reasonable possibility that a claim will be made. If a claim is made, it is probable that damages will be paid and the amount of the loss can be reasonably estimated. This possible loss must be: Accrued Disclosed a. Yes Yes b. Yes No c. No Yes d. No No

  • 1.A contingent liability that is probable and can be reasonably estimated will immediately result in: Multiple...

    1.A contingent liability that is probable and can be reasonably estimated will immediately result in: Multiple Choice an increase in both liabilities and stockholders’ equity. an increase in liabilities and a decrease in net income. an increase in liabilities without any need for financial statement disclosure. an increase in liabilities and a decrease in assets. 2.Which of the following statements is not true regarding the cash flow statement? Multiple Choice The cash flow statement provides information about changes in all...

  • ACC206: Financial Reporting 3.0 1. When bonds are sold at a discount and the effective interest...

    ACC206: Financial Reporting 3.0 1. When bonds are sold at a discount and the effective interest method is used, at each subsequent interest payment date, which of the following is true? a. The cash paid for interest is less than the effective interest expense. b. The cash paid for interest is equal to the effective interest expense. c. The cash paid for interest is more than if the bonds had been sold at a premium. d. The cash paid for...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT