Examlex
Analyze the following independent situations. Required: For each situation, state the likelihood of a future event and state how the contingency will be reported.
A) Company A estimates it will have to pay $85,000 in warranty repairs next year.
B) Company B is being sued by a customer. Company B's attorneys feel that this is a frivolous lawsuit and there is very little chance that the customer will win.
C) Company C co-signed a note payable for Company D. Company D is having serious financial problems and it is reasonably possible that Company C will have to pay the note.
D) Company E is being sued for a patent infringement. Company E's attorney feels that Company E will be found liable for damages caused by the patent infringement. However, the attorney states it is not possible to estimate the amount of the award.
Promoter
An individual or company responsible for organizing and often financing concerts, plays, or other events.
Duty to Be Careful
The duty to be careful, often referred to as a duty of care, is a legal obligation imposed on individuals to act with the caution and attentiveness of a reasonable person to avoid causing harm to others.
Director
An individual appointed or elected to oversee the management and strategic direction of a company or organization.
Due Diligence
Doing everything reasonable to avoid a problem leading to legal liability.
Q15: All available-for-sale (AFS) debt investments are reported
Q35: If an asset is discarded when it
Q44: Vacation pay is an example a liability
Q54: Current liabilities must be paid either in
Q57: The direct write-off method is only acceptable
Q83: Which of the following is true of
Q128: Provide a brief definition of each
Q131: If the likelihood of a future event
Q157: List and briefly describe the method used
Q199: If a plant asset is sold for