KR Corporation Was Involved in a Lawsuit with the Government

question 20

Multiple Choice

KR Corporation was involved in a lawsuit with the Government alleging inadequate air pollution control facilities at its Glowworm plant site during 2013.At December 31,2016,it appeared probable the Government would settle for approximately $150,000.This event should be recorded (i.e.,recognized) in 2016 as a(n) :

• A) Loss on the lawsuit (operating expense).
• B) Unusual gain.
• C) Prior period adjustment.
• D) Unusual loss.
• E) Disclosure of contingency loss only in a note.

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Definitions:

Observed Cell Counts

The actual frequencies or numbers of observations recorded or categorized in each cell of a contingency table in statistical analysis.

Two-Way Table

A tabular method to display the frequency of occurrence of variables that are categorized along two dimensions.

Two-Way Tables

Two-way tables are a method of displaying data that deals with two categorical variables, showing the frequencies of occurrence of different combinations of these variables.

Data

Information collected, measured, or observed for reference, analysis, or calculation purposes.