what is liability and explain whether the free month offer results in a liability for the business.

Q: What is the maximum contribution that an employer can make to an employee’s SIMPLE account?

A: A SIMPLE IRA (Savings Incentive Match Plan for Workers) plan enables employees as well as employers…

Q: How do insurance company makes money?

A: The insurance company is referred to as that company whose predominant and primary business is…

Q: At what point would it be necessary to purchase a Personal Liability Umbrella policy?

A: Umbrella policies are relatively inexpensive so they are worth the inevstment.

Q: explain the inherent risks associated with prepaid expenses and deferred charges.

A: A deferred charge is the same as a long-term prepaid expense, which is an expense made for an…

Q: The fair value of a liability is defined as: a. the appraised value of the liability. b. the price…

A: The fair value of a liability is defined as the amount that would be paid when transferring a…

Q: Warranty expense should be recorded in the period: that the product is repaired or replaced. O the…

A: The income statement is prepared to record the revenues and expenses of the current period. The net…

Q: When a contract includes an option to buy additional goods or services, when does that option give…

A: Contract: Contract is a written document that creates legal agreement between the parties for buying…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: long-term basis at the end of

A: Short-term obligation are those which mature within a period of one year. Long term obligations are…

Q: The adjusting entry to record a contingent liability requires a debit to a loss (or expense) account…

A: Contingent liability is a potential liability that arises as a result of past transactions but the…

Q: Identify the proper accounting for losses on long-term contracts.

A: Revenue recognition: Revenue recognition principle states that every business organization should…

Q: does a cancellation of a service affect the companys balance sheet or book value?

A: Cancellation of service affect the company's balance sheet or book value : Some of the contracts…

Q: anticipated liability, which may or may not arise in future in known as a Current Liability b.…

A: ⇔Debts or obligations that must be paid within a year are referred to as current liabilities,…

Q: What is the rule concerning contingent fees for a covered member?

A:

Q: If a problem is silent as to whether a warranty payable is short-term or long-term, will it be…

A: Warranty payable represents a liability account that reports the estimated amount that a company…

Q: Which of the following is a charteristic of a current liability

A: Liability: Liability is the obligation of the company to pay which comes from a past activity done…

Q: Distinguish between the accounting treatment of a manufacturer’s warranty and an extended warranty.…

A: WarrantyWarranty is assurance provided to a customer by a seller. It is provided against the…

Q: What is the difference between a covenant not to compete in a contract versus a covenant not to…

A: Covenant A covenant is a formal legal agreement between two parties for doing or not doing some…

Q: S1: In accordance with the accrual assumption, the full amount of the premium is recognized…

A: Here given the details of Accrual basis of assumption in the insurance premium collection, the…

Q: Which of the following is not a period of employment for long service leave purposes?   A.…

A: The Long service leave is a leave at the normal rates given to an employee by the employer when the…

Q: At what rate interest on Calls –in-Arrears can be charged by a company according to table A.

A: Answer: Calls-in-arrears are nothing but the situations in which the stockholders refuse to pay the…

Q: ompany can not rely on net income as a valid measure to pay fixed charges

A:

Q: What are some categories of vacation home rentals in accounting? And, please describe some rules for…

A: When it comes to accounting for vacation home rentals, you generally categorize them under…

Q: Describe how debits and credits affect temporary owners’ equity accounts.

A: Accounting follows the double-entry bookkeeping system. The basic rules of double-entry bookkeeping…

Q: Discuss about the long term liability Vs short term liability?

A: SOLUTION- LIABILITY- ANY AMOUNT OR SUM A BUSINESS OR COMPANY IS OBLIGATED TO PAY TO ANY INDIVIDUAL,…

Q: What does the insurer agree to pay for in addition to covering losses in an insurance policy?…

A: Insurance is a contract between the insurer and insured. In this contract, the insurer agrees to…

Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…

A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…

Q: Which of the following arises when the seller's right to consideration from a customer is…

A: A receivable is recognized by the entity when the entity's right to consideration is unconditional…

Q: Differentiate between long term liability and short term liability?

A: First of all, let is understand what a liabilty is - Any amount or sum a business or company  is…

Q: Which one of the following is a special type of liability? a. Accrued expenses b. Salaries payable…

A: Accrued expense: These are those expenses which due but not yet paid.This is short term liability…

Q: Explain how does a liability’s fair value change?

A: Fair value is the value of liability which has to be reported in the books of the company’s…

Q: What is law of Indemnity? Explain the rights and duties of indemnifier and indemnity holder with…

A: The law of indemnity specifies that a person takes the guarantee of any act of the party that causes…

Q: Is deferred liabilities are payroll related liability?

A: A conceded charge responsibility is a duty that is evaluated or is expected for the current time…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.