A Company Has a Lawsuit Pending with Regard to Patent

question 99

Multiple Choice

A company has a lawsuit pending with regard to patent infringement. The amount of the loss can be estimated and has a probable chance of occurrence. What journal entry is required?

• A)debit Lawsuit Loss and credit Cash
• B)debit Estimated Lawsuit Loss and credit Cash
• C)debit Cash and credit Estimated Lawsuit Liability
• D)debit Estimated Lawsuit Loss and credit Estimated Lawsuit Liability

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Definitions:

Short-term Memory

The segment of memory responsible for temporarily holding a small amount of information in an accessible state for a brief period.

Sensory Register

The component of memory that receives and holds input from the senses for a very short amount of time.

Visualize

To visualize means to form a mental image or conception of something, often used as a technique in learning and problem-solving.

Remember

The cognitive process of recalling information that has been learned or experienced.