Homework Answers
Answer :
Option - A, The future event is probable and the amount owed can be reasonably estimated.
Explanation :
A Contingent liability is recorded only when the future event is probable and the amount that can be recorded is estimated reasonably. If these conditions are fulfilled then contingent liability can be disclosed only.
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Question 15 5 pts Contingent liabilities must be recorded if: ООО The future event is probable...
Provisions must be recorded if Question 27 Not yet answered Marked out of 100 P Flag...
Provisions must be recorded if Question 27 Not yet answered Marked out of 100 P Flag question Select one: O A. The future event is probable, but the amount cannot be estimated. O B . The future event is unlikely o C. The future event is unlikely, but the amount can be reliably estimated D. The future event is probable, and the amount can be reliably estimated. O E. All of these answers are correct.
9) Amounts received in advance from customers for future products or services: A) Are liabilities. B)...
9) Amounts received in advance from customers for future products or services: A) Are liabilities. B) Are revenues C) Require an outlay of cash in the future. D) Increase income. E) Are not allowed under GAAP 10) If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as: A) Debit Unearned Revenue, credit Cash. B) Debit Unearmed Revenue, credit Sales. C) Debit Cash, credit Ticket sales payable. D) Debit...
Please match the accounting treatment with the conditions of the pending lawsuit The likelihood is probable...
Please match the accounting treatment with the conditions of the pending lawsuit The likelihood is probable and CANNOT reasonably estimate the obligation amount Likelihood of the future event is remote Choose Record liability on the balance sheet Ignore Disclose in the notes The likelihood is reasonably possible and can reasonably estimate the obligation amount Choose The likelihood is probable and can reasonably estimate the obligation amount Choose
Question 8 0/0.41 pts A company has a lawsuit pending with regard to patent infringement. The...
Question 8 0/0.41 pts A company has a lawsuit pending with regard to patent infringement. The amount of the loss can be estimated and has a probable chance of occurrence. What journal entry is required? debit Estimated Lawsuit Loss and credit Estimated Lawsuit Liability debit Lawsuit Loss and credit Cash debit Estimated Lawsuit Loss and credit Cash debit Cash and credit Estimated Lawsuit Liability Question 7 0/0.41 pts Unearned Service Revenue relating to services, to be provided in one month,...
Need to figure out part b. The following three independent sets of facts relate to contingent...
Need to figure out part b.
The following three independent sets of facts relate to contingent liabilities: 1. In November of the current year, an automobile manufacturing company recalled all pickup trucks manufactured during the past two years. A flaw in the battery cable was discovered and the recall provides for replacement of the defective cables. The estimated cost of this recall is $2.3 million. 2. The EPA has notified a company of violations of environmental laws relating to hazardous...
please solve ABCD Exercise 8-13A Determine proper treatment of a contingent liability (LOV-5) Pacific Cruise Line...
please solve ABCD
Exercise 8-13A Determine proper treatment of a contingent liability (LOV-5) Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships Required: 1 The likelihood of a payment occurring is probable, and the estimated amount is $110 million 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.90 to $110 million 3. The likelihood of a payment occurring...
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...
a. Recording of a contingent liability 1. An IOU promising to repay the amount borrowed plus...
a. Recording of a contingent liability 1. An IOU promising to repay the amount borrowed plus interest 2 Payment amount is reasonably possible and can be b. Unearned revenues reasonably estimated c. The riskiness of a business's obligations. 3. Mixture of liabilities and equity a business uses d. Disclosure of a contingent liability 4 Payment amount is probable and can be reasonably estimated 5. A liability that requires the sacrifice of something other e. Interest on debt than cash 6...
Question 8 A contingent liability must be disclosed in the body of the financial statements, including...
Question 8 A contingent liability must be disclosed in the body of the financial statements, including the expected dollar amount. can always be calculated with great precision (i.e., always has a definite amount). is not of interest to readers of financial statements. include liabilities for warranty repairs. is a potential liability that depends on a future event arising out of a past transaction.
(3) A Contingent liability is a potential rather than an actual liability because its depends on...
(3) A Contingent liability is a potential rather than an actual liability because its depends on a future event. Some event must happen( the contingency) for a contingent liability to have to be paid. Contingent liabilities are journalized when the likelihood of an actual loss is probable and the amount of the expense can be reasonably estimated. Rags to Riches, a clothing resale store, employs one salesperson, Dee Hunter. Hunters straight time wage is OMR 10 per hour, with time...
Provisions must be recorded if Question 27 Not yet answered Marked out of 100 P Flag question Select one: O A. The future event is probable, but the amount cannot be estimated. O B . The future event is unlikely o C. The future event is unlikely, but the amount can be reliably estimated D. The future event is probable, and the amount can be reliably estimated. O E. All of these answers are correct.
9) Amounts received in advance from customers for future products or services: A) Are liabilities. B) Are revenues C) Require an outlay of cash in the future. D) Increase income. E) Are not allowed under GAAP 10) If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as: A) Debit Unearned Revenue, credit Cash. B) Debit Unearmed Revenue, credit Sales. C) Debit Cash, credit Ticket sales payable. D) Debit...
Please match the accounting treatment with the conditions of the pending lawsuit The likelihood is probable and CANNOT reasonably estimate the obligation amount Likelihood of the future event is remote Choose Record liability on the balance sheet Ignore Disclose in the notes The likelihood is reasonably possible and can reasonably estimate the obligation amount Choose The likelihood is probable and can reasonably estimate the obligation amount Choose
Question 8 0/0.41 pts A company has a lawsuit pending with regard to patent infringement. The amount of the loss can be estimated and has a probable chance of occurrence. What journal entry is required? debit Estimated Lawsuit Loss and credit Estimated Lawsuit Liability debit Lawsuit Loss and credit Cash debit Estimated Lawsuit Loss and credit Cash debit Cash and credit Estimated Lawsuit Liability Question 7 0/0.41 pts Unearned Service Revenue relating to services, to be provided in one month,...
Need to figure out part b.
The following three independent sets of facts relate to contingent liabilities: 1. In November of the current year, an automobile manufacturing company recalled all pickup trucks manufactured during the past two years. A flaw in the battery cable was discovered and the recall provides for replacement of the defective cables. The estimated cost of this recall is $2.3 million. 2. The EPA has notified a company of violations of environmental laws relating to hazardous...
please solve ABCD
Exercise 8-13A Determine proper treatment of a contingent liability (LOV-5) Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships Required: 1 The likelihood of a payment occurring is probable, and the estimated amount is $110 million 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.90 to $110 million 3. The likelihood of a payment occurring...
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...
a. Recording of a contingent liability 1. An IOU promising to repay the amount borrowed plus interest 2 Payment amount is reasonably possible and can be b. Unearned revenues reasonably estimated c. The riskiness of a business's obligations. 3. Mixture of liabilities and equity a business uses d. Disclosure of a contingent liability 4 Payment amount is probable and can be reasonably estimated 5. A liability that requires the sacrifice of something other e. Interest on debt than cash 6...
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