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The following issues of Provi Ltd. are still outstanding at the yearend. Help the accountant to decide if it is payable or a provision should be made or it should be only presented in the Notes. Drag the correct answer to the place after each problem. 1.Provi Ltd's management announced that next year the company would suffer losses according to the estimations. The expected loss is $ 17 million. 2. One of the customers sued Provi Ltd. because of a breach of the contract. Lawyers informed Provi Ltd. that the expected fine payable would be 100 thousand s. 3. Provi Ltd. decided to provide a guarantee to all of its products and published it on its website. It is not required to provide guarantee according to the law. They expect that 95% of the products are going to operate all right, 4% will have a minor problem which may be repaired at the cost of $10, the last 1% will be faulty and must be exchanged, which will cost $100 Provi Ltd. sold 50,000 products during the period. 4. Provi Ltd. assumed surety (collateral) for the loan of its subsidiary. The subsidiary is working well, but if it will go bankrupt, the company has to pay back $1 million. 5. An employee sued Provi Ltd. because he is not satisfied with the COVID measures the company has taken. Provi Ltd.'s lawyers said that there is a 60 % probability that the company has to pay around $13,000 to the employee. 6. On the last day of the business year management celebrated the successful year and proposed a $100,000 dividend payment. Provision - SFP Payable -SFP Only in Notes

The following issues of Provi Ltd. are still outstanding at the yearend. Help the accountant to decide if it is payable or a provision should be made or it should be only presented in the Notes. Drag the correct answer to the place after each problem. 1.Provi Ltd's management announced that next year the company would suffer losses according to the estimations. The expected loss is $ 17 million. 2. One of the customers sued Provi Ltd. because of a breach of the contract. Lawyers informed Provi Ltd. that the expected fine payable would be 100 thousand s. 3. Provi Ltd. decided to provide a guarantee to all of its products and published it on its website. It is not required to provide guarantee according to the law. They expect that 95% of the products are going to operate all right, 4% will have a minor problem which may be repaired at the cost of $10, the last 1% will be faulty and must be exchanged, which will cost $100 Provi Ltd. sold 50,000 products during the period. 4. Provi Ltd. assumed surety (collateral) for the loan of its subsidiary. The subsidiary is working well, but if it will go bankrupt, the company has to pay back $1 million. 5. An employee sued Provi Ltd. because he is not satisfied with the COVID measures the company has taken. Provi Ltd.'s lawyers said that there is a 60 % probability that the company has to pay around $13,000 to the employee. 6. On the last day of the business year management celebrated the successful year and proposed a $100,000 dividend payment. Provision - SFP Payable -SFP Only in Notes

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following issues of Provi Ltd. are still outstanding at the yearend. Help the accountant to decide if it is payable or a provision should be made or it should be only presented in the Notes. Drag the correct answer to the place after each problem. 1.Provi Ltd's management announced that next year the company would suffer losses according to the estimations. The expected loss is $ 17 million. 2. One of the customers sued Provi Ltd. because of a breach of the contract. Lawyers informed Provi Ltd. that the expected fine payable would be 100 thousand s. 3. Provi Ltd. decided to provide a guarantee to all of its products and published it on its website. It is not required to provide guarantee according to the law. They expect that 95% of the products are going to operate all right 4% will have a minor problem which may be repaired at the cost of s10, the last 1% will be faulty and must be exchanged, which will cost $100 Provi Ltd. sold 50,000 products during the period. 4. Provi Ltd. assumed surety (collateral) for the loan of its subsidiary. The subsidiary is working well, but if it will go bankrupt, the company has to pay back $1 million. 5. An employee sued Provi Ltd. because he is not satisfied with the COVID measures the company has taken. Provi Ltd.'s lawyers said that there is a 60 % probability that the company has to pay around $13.000 to the employee. 6. On the last day of the business year management celebrated the successful year and proposed a s100.000 dividend payment. Provision - SFP Payable -SEP Only in Notes
Transcribed Image Text:The following issues of Provi Ltd. are still outstanding at the yearend. Help the accountant to decide if it is payable or a provision should be made or it should be only presented in the Notes. Drag the correct answer to the place after each problem. 1.Provi Ltd's management announced that next year the company would suffer losses according to the estimations. The expected loss is $ 17 million. 2. One of the customers sued Provi Ltd. because of a breach of the contract. Lawyers informed Provi Ltd. that the expected fine payable would be 100 thousand s. 3. Provi Ltd. decided to provide a guarantee to all of its products and published it on its website. It is not required to provide guarantee according to the law. They expect that 95% of the products are going to operate all right 4% will have a minor problem which may be repaired at the cost of s10, the last 1% will be faulty and must be exchanged, which will cost $100 Provi Ltd. sold 50,000 products during the period. 4. Provi Ltd. assumed surety (collateral) for the loan of its subsidiary. The subsidiary is working well, but if it will go bankrupt, the company has to pay back $1 million. 5. An employee sued Provi Ltd. because he is not satisfied with the COVID measures the company has taken. Provi Ltd.'s lawyers said that there is a 60 % probability that the company has to pay around $13.000 to the employee. 6. On the last day of the business year management celebrated the successful year and proposed a s100.000 dividend payment. Provision - SFP Payable -SEP Only in Notes
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