Gore Inc Recorded a Liability in 2013 for Probable Litigation Losses

question 118

Multiple Choice

Gore Inc. recorded a liability in 2013 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.

---

Definitions:

Internal Proposal

A document or presentation aimed at persuading internal stakeholders or management to approve a project, budget, or initiative.

Management Support

The backing and assistance provided by management to help in the implementation of strategies, projects, or initiatives.

Request Funds

The act of formally asking for financial resources or support, typically for a project, cause, or organization.

Best Structure

The most effective organization or arrangement of elements within a system, document, or composition.