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sveta [45]
2 years ago
8

You are auditing Rodgers and Company. You are aware of a potential loss due to noncompliance with environmental regulations. Man

agement has assessed that there is a​ 40% chance that a​ $10M payment could result from the​ non-compliance. The appropriate financial statement treatment is to
A. since there is less than a​ 50% chance of​ occurrence, ignore.
B. since there is greater that a remote chance of​ occurrence, accrue the​ $10 million.
C. accrue a​ $4 million liability.
D. disclose a liability and provide a range of outcomes.
Business
1 answer:
aniked [119]2 years ago
4 0

Answer:

D. disclose a liability and provide a range of outcomes.

Explanation:

As there are 40% chances to the outcome that liability will occur, it is not nominal to be ignored. And therefore, it shall be shown in the balance sheet, as a note, with different possibilities and their expected results.

As the amount attached is huge and that the company shall not ignore such a coming liability, as if it do not happen, it can be reversed, and if it does the company shall be ready to have the liability in case of any default.

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One major reason businesses seek investment is to:
dimaraw [331]

Answer:

D. reduce their need for consistent financial growth.

Explanation:

In order to pursue the investment for the businesses , the major reason is to decrease the need for stabling the financial growth of the businesses and every businesses wants the stability or consistency in their business

Neither the company wants to increase the cost, nor ignore the production possibility curve. Also, the boosting of productivity is not considered a major reason.

Therefore in the given case, the option D is the correct and the same is to be considered

8 0
2 years ago
Read 2 more answers
Round to the nearest unit.Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in do
mrs_skeptik [129]

Answer:

2330

23Explanation:

8 0
2 years ago
.Rhonda has agreed to invest $16,000 in a partnership with her sister and brother-in-law. Rhonda does not plan to work in the pa
Elena-2011 [213]

Answer:

The correct answer is option 4.

Explanation:

Rhonda has agreed to invest $16,000 in a partnership with her sister and brother-in-law. she does not plan to work in partnership or invest any of her wealth other than $16,00. But she intends on sharing profits. This implies that Rhonda is a limited partner in the business.

A limited partner is a partial owner of a business. His/her liability to the business's debts is limited to the extent of the amount he/she has invested in the business. Such partners are often called silent partners as they don't have any involvement in the day to day operations.

3 0
2 years ago
Marigold Co. reports the following information for 2020: sales revenue $780,800, cost of goods sold $519,000, operating expenses
siniylev [52]

Answer:

Explanation:

The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.  

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares  

Before preparing the statement of stockholders’ equity we need to calculate the net income or net loss as the case may be. The computation is shown below:

Net income = Sales revenue - cost of goods sold - operating expenses

                    = $780,800 - $519,000 - $88,800

                    = $173,000

The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below:

4 0
2 years ago
Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store
Llana [10]

Answer:

Exclusive.

Explanation:

In this scenario, Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store in the entire region. The degree of channel coverage for Tiffany's is exclusive.

In marketing, there are basically three (3) types of market channel coverage used by businesses;

1. Intensive market coverage: this involves a company extending its products to as many sales outlets as possible. Therefore, it's a saturation coverage of the market. Some examples are softdrinks, beer, or cigarettes company.

2. Selective market coverage: it involves a company using a limited number of sales outlets to sell its products in a region. Thus, it lie between an intensive distribution and exclusive market coverage.

3. Exclusive market coverage: this involves a company extending its products to only one sales outlets. Thus, it is the exact opposite of an intensive market coverage and a complex form of selective market coverage. It gives companies prestige and improves brand quality perceptions.

<em>Hence, the degree of channel coverage for Tiffany store is exclusive market coverage. </em>

6 0
2 years ago
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