Which of the Following Situations Require Recording a Liability in 2014

question 88

Multiple Choice

Which of the following situations require recording a liability in 2014? (More than one answer may be correct.)

• A) In 2014, a company manufactures and sells stereo equipment which carries a three-year warranty.
• B) In 2015, a theater group receives payments in advance from season ticket holders for productions to be performed in 2015.
• C) A company is a defendant in a legal action. At the end of 2014, the company's attorney feels it is possible the company will lose, and that the amount of the loss might be material.
• D) During 2014, a Beijing agricultural co-operative is concerned about the risk of loss if inclement weather destroys the crops.

---

Definitions:

Field Value

The specific data or content entered into a particular field or cell in a database or spreadsheet.

Hyperlink

A reference or link in a document that users can click on to jump to another location or document within the same application or on the internet.

Data Type

A classification that specifies the kind of value a variable can hold, such as integer, string, or Boolean, and determines how the data can be used.

Email Addresses

Digital identifiers used to send and receive email messages over the internet, typically consisting of a local part, an @ symbol, and a domain part.