Young Company is involved in a lawsuit.The liability which could arise as a result of this lawsuit should be recorded on the books if the probability of Young owing money as a result of the lawsuit is:
A) Remote and the amount can be reasonably estimated.
B) Probable and the amount can be reasonably estimated.
C) Reasonably possible and the amount can be reasonably estimated.
D) Probable and the amount cannot be reasonably estimated.
Correct Answer:
Verified
Q48: A contingent liability should be accrued on
Q49: Footnote disclosure is required for material potential
Q50: If management can estimate the amount of
Q51: Bears Inc.sells football helmets to local schools
Q52: Reeves Co.filed suit against Higgins,Inc.,seeking damages for
Q54: If management can estimate the amount of
Q55: Strikers,Inc.sells soccer goals to customers over the
Q56: Talks-A-Lot,Inc.sells cell phones to customers and expects
Q57: Which of the following is true regarding
Q58: When a gain contingency is probable and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents