OIgnore the lawsuit. No impact on the financial statements or Disclosurein the NotesRecord the $1,000,000 as a Loss on the 2019 Income StatementPresent the $1,00,000 as a Loss on the Income Statement and aLiability on the Balance Sheet; and required Disclosure in the NotesPresent the $1,00,000 as a Loss on the Income Statement and aLiability on the Balance SheetSave & ExitNo Loss on the Income Statement or Liability on the Balance Sheet, butrequired Disclosure in the Notes West Chester University is being sued for $1,000,000 by Mr. Durstin. Mr. Durstin is claiming he wasseverely injured on June 21, 2019 when he slipped on the snow and ice that had not been properlyshoveled off of the pavement in front of Anderson Hall. As of June 30, 2019, the last day of WestChester University's fiscal year, Mr. Durstin's lawsuit had not yet gone to trial. Which of the following isCORRECT concerning the impact of the contingent liability from Mr. Durstin's lawsuit on West ChesterUniversity's June, 30, 2019 financial statements?Multiple ChoiceIgnore the lawsuit. No impact on the financial statements or Disclosurein the NotesRecord the $1,000,000 as a Loss on the 2019 Income StatementPresent the $1,00,000 as a Loss on the Income Statement and aLiability on the Balance Sheet; and required Disclosure in the Notes

Contingent liability refers to the liability which decrease the assets as well as net profitability…

Answered: West Chester University is being sued…

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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