Onopea Inc

question 93

Multiple Choice

Onopea Inc.considered two contingencies at the end of 2016: ** a probable loss in the range of $300,000 to $500,000
** a reasonably possible loss of $150,000
Under U.S.GAAP,what is the balance for contingent liabilities at the end of 2016?

• A)$300,000
• B)$400,000
• C)$450,000
• D)$550,000

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Definitions:

Annual Net Operating Cash Inflows

The total amount of money that flows into a business from its operational activities, after all operational expenses have been paid, over a one-year period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.

Operating Cash Inflows

The money received by a company from its operational activities, such as sales revenue, during a specific period.

Discount Rate

In finance, the rate used to calculate the present value of future cash flows, reflecting the risk and time value of money.