If a Loss Contingency Related to a Lawsuit Against a Firm

question 94

Multiple Choice

If a loss contingency related to a lawsuit against a firm is deemed to have a reasonable probability of requiring ultimate payment, then the proper accounting treatment of the loss contingency will

• A)require note disclosure.
• B)decrease the debt/asset ratio.
• C)increase the accounts payable/sales ratio.
• D)decrease the debt/equity ratio.

Learn the basic problem-solving procedure and the importance of training for both leaders and members.

Understand the optimal size for small group communication to be effective.

Recognize the importance of establishing criteria before listing alternatives in problem-solving.

Know the best practices for facilitating group participation and minimizing group pressure.