
Concept explainers
1
Introduction:The liabilities of a business which is either uncertain or the amount of which is not estimated correctly are contingencies. A liability is recorded when there is certainty of it happening with the amount of loss. A contingency is disclosed in notes when either happening of liability is not certain or either the amount of loss is not estimated. A contingency is not recorded when there is no possibility of it happening.
To determine: The option that H will choose for the given case. Options are (a) record a liability (b) disclose a liability or (c) have no disclosure.
2
Introduction:The liabilities of a business which is either uncertain or the amount of which is not estimated correctly are contingencies. A liability is recorded when there is certainty of it happening with the amount of loss. A contingency is disclosed in notes when either happening of liability is not certain or either the amount of loss is not estimated. A contingency is not recorded when there is no possibility of it happening.
To determine: The option that H will choose for the given case. Options are (a) record a liability (b) disclose in notes or (c) have no disclosure.
3
Introduction:The liabilities of a business which is either uncertain or the amount of which is not estimated correctly are contingencies. A liability is recorded when there is certainty of it happening with the amount of loss. A contingency is disclosed in notes when either happening of liability is not certain or either the amount of loss is not estimated. A contingency is not recorded when there is no possibility of it happening.
To determine: The option that H will choose for the given case. Options are (a) record a liability (b) disclose in notes or (c) have no disclosure.

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Chapter 9 Solutions
Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
- Do fast answer of this accounting questionsarrow_forwardChapter: Accrual Accounting - Jim Corporation's liability account balances at June 30, 2023included a 10 percent note payable. The note is dated October 1, 2021, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2022. In Jim's June 30, 2023 balance sheet, what amount should be reported as Interest Payable for this note? Answerarrow_forwardGeneral accountingarrow_forward
- Need help this questionarrow_forwardWhat was the average collection period?arrow_forwardEvergreen Corp. has a current accounts receivable balance of $625,000. Credit sales for the year just ended were $6,750,000. a) What is the company's receivables turnover? b) What is the company's days' sales in receivables? c) How long did it take on average for credit customers to pay off their accounts during the past year?arrow_forward
- Arlington Supplies Ltd. manufactures and sells cardboard boxes. The stock of boxes was included in the closing inventory as of December 31, 2010, at a cost of $65 each per bundle. During the final audit, the auditors noted that the subsequent sale price for the inventory on January 20, 2011, was $50 per bundle. Additionally, an inquiry revealed that during the physical stock take, a storage issue led to minor water damage, affecting the structural integrity of the boxes. As a result, Arlington Supplies Ltd. spent $18 per bundle for drying and reinforcing the boxes. The net realizable value and inventory write-down (loss) amount to: (a) $50 and $15 respectively. (b) $47 and $18 respectively. (c) $32 and $33 respectively. (d) $40 and $25 respectively. (e) $35 and $30 respectively.arrow_forwardHiii, Tutor give answer to this problemarrow_forwardAlpha Corp. produces and sells a single product. The company's contribution format income statement for the month reports: • Sales (7,500 units) = $225,000 • Variable expenses = $112,500 • Contribution margin = $112,500 • Fixed expenses = $85,000 • Net operating income = $27,500 If Alpha Corp. sells 8,000 units, what is the total contribution margin?arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
