One of Tonic Corp's Employees Invented a Revolutionary Coffee Lid

question 59

Multiple Choice

One of Tonic Corp's employees invented a revolutionary coffee lid that cools coffee as you drink it in order to prevent burns. Two children ordered coffee and burned their mouths after failing to properly secure the lids. The children's parents sued. Tonic Corp's. lawyers believe that it is highly probable that judgment will be rendered against Tonic Corp and it is likely a payment in excess of $2 million will be incurred. The proper accounting treatment of the lawsuit will

• A)decrease total liabilities.
• B)increase total liabilities.
• C)increase the current ratio.
• D)require accountants to wait until the suit is settled to account for the event.

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Definitions:

Left Hemisphere

Refers to the half of the human brain that is typically associated with analytic thought, logic, language, science, and math.

Language Processing

The method by which the brain comprehends spoken or written language, involving decoding semantic, syntactic, and phonological elements.

Phonological Development

The process of learning to segment speech into meaningful units of sound.

Speech

The oral expression of language, consisting of the articulation of sounds for the purposes of communication.