Gore Inc Recorded a Liability in 2018 for Probable Litigation Losses

question 112

Multiple Choice

Gore Inc. recorded a liability in 2018 for probable litigation losses of $2 million. Ultimately, $5 million in legitimate warranty claims were filed by Gore's customers.

• A) Gore has made a change in accounting principle, requiring retrospective adjustment.
• B) Gore needs to correct an accounting error.
• C) Gore is required to adjust a change in accounting estimate prospectively.
• D) Gore is not required to make any accounting adjustments.

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Definitions:

Thematic Preoccupations

Recurrent themes or subjects that dominate an artist's, writer's, or filmmaker's body of work, reflecting their particular interest or concerns.

Absolute Morality

The belief in fixed, universal moral standards that apply to all situations and cultures without variation or exception.

Genre Conventions

Standard features, themes, or elements that are commonly found within a specific genre, allowing audiences to recognize and categorize it.

Arrogant Racist

An individual who combines an overbearing sense of superiority with discriminatory beliefs based on race.