Below are three independent situations:

a. In August, 2021 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Barkley Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000.
b. A suit for breach of contract seeking damages of $3,000,000 was filed by an author against Henderson Co. on October 4, 2018. Henderson's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1,000,000 and $2,250,000. No amount within this range is a better estimate of potential damages than any other amount.
c. Kroft is involved in a pending court case. Kroft’s lawyers believe it is probable that Kroft will be awarded damages of $1,000,000.

Should you accrue a liabiity in each situation?

Answers

Answer 1

Answer:

a. In August, 2021 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Barkley Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000.

No liability should be recorded, only included in the footnotes. The liability is not probable, nor the amount can be determined.

b. A suit for breach of contract seeking damages of $3,000,000 was filed by an author against Henderson Co. on October 4, 2018. Henderson's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1,000,000 and $2,250,000. No amount within this range is a better estimate of potential damages than any other amount.

No liability should be recorded, only included in the footnotes. The liability is probable, but the amount cannot be determined.

c. Kroft is involved in a pending court case. Kroft’s lawyers believe it is probable that Kroft will be awarded damages of $1,000,000.

The liability must be recorded since the liability is probable and can be determined.

Answer 2

Liability is a type of debt that the business is required to pay at the present time or in any future date.

When is liability accrue?

a. The company would not be in condition to accrue the liability of paying injured labor due to his own negligence as the amount is not probably determined.

b. The company would again not have any accrued liability as liability has not yet been incurred.

c. The liability to pay for damages is probable which would be incurred in the future; thus, should be recorded in the accounts of the business.

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Related Questions

Select the correct answer.
Workers like authoritarian leaders best.
A True
B. False

Answers

Answer:

False

Explanation:

In autocratic leadership, the leader or manager does not allow the team members to contribute to the group's decisions. It is also known as authoritarian leadership. The leader issues command-like instructions that must be followed by everyone.

In general, workers do not like authoritarian leaders. Authoritarian leaders do not consider workers' opinions, nor do they value their inputs in decision making. Discouraging group inputs stifles creativity and innovation. Workers are always demoralized as they do not feel part of the team and its decisions.

Answer:

False!

Explanation:

I just took the test right now!

A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $150. If they offer a 2 year extended warranty for $12, what is the company's expected value of each warranty sold

Answers

Answer:

$10.97

Explanation:

Calculation for what is the company's expected value of each warranty sold

First step is to calculate the outcome

Outcome=$150-$12

Outcome=138

Second step is to calculate the outcome probability

Outcome probability=1-0.007

Outcome probability=0.993 and 0.007 respectively

Now let calculate the company's expected value of each warranty sold

Expected value of each warranty sold=$12*0.993+(-$138)*0.007

Expected value of each warranty sold=$10.97

Therefore Expected value of each warranty sold is $10.97

No-Toxic-Toys currently has $400,000 of equity and is planning an $160,000 expansion to meet increasing demand for its product. The company currently earns $100,000 in net income, and the expansion will yield $50,000 in additional income before any interest expense. The company has three options: (1) do not expand, (2) expand and issue $160,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $160,000 from equity financing. For each option, compute (a) net income and (b) return on equity (Net Income ÷ Equity). Ignore any income tax effects. (Round "Return on equity" to 1 decimal place.)

Answers

Answer:

OPTION 1:

net income = $100,000

return on equity = $100,000 / $400,000 = 25%

OPTION 2:

net income = $100,000 + $50,000 - ($160,000 x 8%) = $150,000 - $12,800 = $137,200

return on equity = $137,200 / $400,000 = 34.3% (yields highest returns but also increases risk)

OPTION 3:

net income = $100,000 + $50,000 = $150,000

return on equity = $150,000 / ($400,000 + $160,000) = $150,000 / $560,000 = 26.79%

The explanation for why marginal cost is positive and rising in the short run is ________ marginal product of labor in the production process. A) a zero B) a constant C) an increasing D) a diminishing

Answers

Due to an increase in the marginal cost of production for more units than the marginal product of labor is increasing.

What is Marginal production?

Marginal production is the additional production of units and additional input of labor over the expected production level. The cost incurred for the marginal production changes in total, but remain constant per unit of production.

There is a direct relationship between the marginal cost of production and the marginal product of labor.

Since the labor is the only variable input for the production and the marginal cost of production is diminishing, this means the cost of producing an additional unit of production is lower.

Thus, the reduction in the marginal cost will increase the marginal product of labor.

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Governor Patrick Cote of Vermont is beginning his primary campaign for the presidency and is considering whether or not to accept public funds set aside for primary candidates in the Presidential Election Campaign Fund. Cote is concerned that his primary opponents may forgo revenue from the fund with the hope of raising money beyond its established limits. From which group could Cote solicit funds to maximize donations to his primary campaign, thereby allowing him the option of declining money from the Presidential Election Campaign Fund

Answers

Question Completion with Options:

a. Political action committees

b. Professional organizations

c. Corporations

d. Labor unions

Answer:

The group from which Cote could solicit funds to maximize donations to his primary campaign, thereby allowing him the option of declining money from the Presidential Election Campaign Fund is called:

Political action committees

Explanation:

A political action committee is a committee set up primarily to raise funds for the political campaign of a candidate.  The committee collects funds from various individuals, better called contributors, and then distributes the funds to candidates who support the same ideals as the contributors.  The establishment of a political action committee by supporters of a political aspirant enables the committee to collect funds for distribution to a candidate's political course.  The committee is established based on ideology and political interests.

You know that one of your shortcomings is that you have no real job experience to speak of. You are considering beefing up your resume by exaggerating the extent of the class project you worked on for a few weeks at your brother-in-law’s small consulting firm. You could reword the resume to make it sound as if you were actually employed there and that your responsibilities were greater than they actually were. What would you do?

Answers

Answer:

Obviously, I will not reword the resume in order make it sound as if I was employed.

Explanation:

Solution:

Obviously, I will not reword the resume in order make it sound as if I was employed.

Because:

1. It is ethically wrong.

2. If I reword the resume, then obviously, I would present fake certificates to the company in order to prove the rewording or exaggerating presenting in the resume.

3. Fake documents and certificates can not be hidden for long.

4. It is really dangerous and illegal to present fake data and certificates. You can get a job on those fake profiles but after some time, chances are very high that you will be caught red handed. And consequently, you can face severe legal proceedings as well.

Hence, I will definitely not exaggerate or reword the resume. Better way is to get an internship experience for free and then provide real certificates to secure a job.  

Which of Kant's basic human rights is violated when a supervisor requires an employee to do something that is unsafe or environmentally damaging, in spite of the employee clearly objecting to the order

Answers

Answer: freedom of conscience

Explanation:

Kant's basic human rights that is violated when a supervisor requires an employee to do something that is unsafe despite the fact that he objected us referred to as freedom of conscience.

Freedom of conscience is also referred to as the freedom of thought and it simply means that an individual has the freedom to have their own thoughts and be able to consider a fact irrespective of the viewpoint of others.

Listed below are current asset items for Lester Company at December 31, 2019. Finished goods inventory $35,000 Cash 22,000 Prepaid expenses 2,000 Accounts receivable 4,000 Short-term investments 25,000 Raw materials inventory 17,000 Work in process inventory 23,000 Supplies 500 Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Answers

Answer:

Current Assets :

Work in process inventory          23,000

Raw materials inventory              17,000

Finished goods inventory           35,000

Supplies                                            500

Accounts receivable                     4,000

Prepaid expenses                         2,000

Short-term investments              25,000

Cash                                            22,000

Total                                           128,500

Explanation:

Current Assets are always shows in the order of their liquidity in the Balance Sheet. That is the order in which they are quickly be converted into cash within a period of less than 12 months. Start with the Inventories to cash and cash equivalents as shown above.

How does GDP accounting record the following events? For each of them, describe how they would be computed in GDP accounts using the income method, the production method, and the expenditure method.

a. Tom purchases a brand new Volkswagen from Germany for his start up ride sharing business for $20,000. He provides ride-sharing services earning him revenues of $40,000. During the course of the year, the Volkswagen depreciates by $2,000. Tom has no other costs.
b. An army battalion is deployed to the border to repel a threatened Canadian invasion. The soldiers earn wages of $10,000 and use ammunition that the government bought for $5,000. The ammunition was produced using $2,000 of imported steel and 100 hours of work, for which the workers were paid $1,000. Hint: two things are produced in this example, what is the value added for each of them?
c. The government collects $1000 in income taxes from Pam.
d. Pam earns $4000 for working as a babysitter and pays $1000 in income taxes.

Answers

Answer:

a. Tom purchases a brand new Volkswagen from Germany for his start up ride sharing business for $20,000. He provides ride-sharing services earning him revenues of $40,000. During the course of the year, the Volkswagen depreciates by $2,000. Tom has no other costs.

GDP increases by $20,000:

It will increase $40,000 by the services provided (consumption) but will decrease $20,000 due to the imported car (negative net exports).

b. An army battalion is deployed to the border to repel a threatened Canadian invasion. The soldiers earn wages of $10,000 and use ammunition that the government bought for $5,000. The ammunition was produced using $2,000 of imported steel and 100 hours of work, for which the workers were paid $1,000. Hint: two things are produced in this example, what is the value added for each of them?

GDP increases by $13,000:

Government spending increases by $15,000.

Net imports decrease by $2,000.

c. The government collects $1000 in income taxes from Pam.

GDP doesn't change. Taxes are not included in the GDP

d. Pam earns $4000 for working as a babysitter and pays $1000 in income taxes.

GDP increases by $4,000 (consumption).

A municipal bond carries a coupon rate of 6.50% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 35% combined tax bracket

Answers

Answer:

10%

Explanation:

Formula for computation of equivalent taxable yield is r = rm/1-t. Where the tax rate is t, rm is Yield on municipal bond and r is Tax equivalent yield

r = rm/1-t

r = 6.50% / 1 - 35%

r = 6.50% / 0.65%

r = 10%

So, the equivalent taxable yield of this bond to a taxpayer in a 35% combined tax bracket is 10%

1. When you played the New York City Budget game, how did this change your opinion on how governments operate cities? What are some of the ways a city can earn revenue?
2. What are the similarities and differences between balancing a city budget and balancing a personal budget?

Answers

85 billion hope I was much help have a nice day

CCC Company’s most recent income statement shows (in thousands of dollars) sales $2,000, interest payments $100, and net income $140. Its most recent balance sheet shows (also in thousands of dollars) total debt financing $800. If the total asset turnover ratio computed from the company’s most recent financial statements was 1.5, what would we compute return on assets (ROA) to be? (Hint: you should use the DuPont method of analysis.) A. 4.7% B. 10.5% C. 26.7% D. 18.7% E. 3.0%

Answers

Answer:

B. 10.5%

Explanation:

The computation of the return on assets is shown below:

As we know that

Return on assets = Net income ÷ total assets

where,

Total assets is

Total asset turnover = Sales ÷ Total assets

1.5 = $2,000 ÷ Total assets

So, the total assets is $1,333.33

Now the return on assets is

= $140 ÷ $1,333.33

= 10.5%

Timing Technology, Inc. manufactures timing devices. During 20x1, 1,500,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 320,000 units in work in process. These units were 49 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 450,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:


Units Materials Labor
Work in process, January 1, 20x1 310,000 $310,000 $315,400
(84% complete as to conversion)
Units started in production 1,510,000
Direct-material costs $2,966,000
Direct-labor costs $2,998,200

Required:
Complete the following schedule as of December 31, 20x1, to compute the cost of work-in-process inventory.

Physical Units

Total units to account for 0


Total units to account for 0


Answers

Answer:

The cost of work-in-process inventory as of December 31, 20x1 is:

= $368,998.40

Physical units:

For materials = 320,000 units

For conversion = 156,800 units

Explanation:

a) Data and Calculations:

                                                                   Units      Materials         Labor

Work in process, January 1, 20x1          310,000    $310,000       $315,400

(84% complete as to conversion)

Units started in production                1,510,000     1,510,000      1,510,000

Direct-material costs                                          $2,966,000

Direct-labor costs                                                                      $2,998,200

Total costs                                                          $3,276,000    $3,313,600

Units started in production                1,510,000   1,510,000      1,510,000

Work in process, December 31, 20x1 320,000    320,000        156,800

Total equivalent units                                           1,830,000    1,666,800

Costs per equivalent unit                                    $1.79            $1.988

Cost of Ending WIP    = $ (320,000 *$1.79 + 156,800*$1.988)

= $57,280 for materials + $311,718.40 for materials

= $368,998.40

b) The weighted average method was used to calculate the equivalent units.  With this method, the beginning units of work-in-process are not part of the calculation (only the units started and completed and the ending work-in-process are).  However, the costs of the beginning work-in-process form part of the calculation together with the cost of units started and completed during the current period.

In your resume you need to mention the names and contact information of your previous employers under

Answers

Answer:

work history

Explanation:

This year, Johnson Mills has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense?

Answers

Answer:

$3,857

Explanation:

From the above, we do know that;

Revenue - Expenses = Net income

But

Expenses = Revenue - Cost of goods sold - Admin expenses - Depreciation expenses

Also,

Net income tax = Income before taxes × ( 1 - tax rate)

Since we do not know Net income taxes,

Net income - Dividends = Change in retain earnings

Net income = $2,810 + $700

= $3,510

Income before taxes = $3,510 / 0.79

= $4,443

$37,800 - $23,200 - $6,300 - Depreciation expenses = $4,443

Therefore,

Depreciation expenses = $3,857

For each situation, prepare the appropriate journal entry for the redemption of the bonds.

a. Flounder Corp. redeemed $124,000 face value, 10% bonds on April 30, 2022, at 105. The carrying value of the bonds at the redemption date was $111,972. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
b. Shamrock, Inc. redeemed $162,000 face value, 12.5% bonds on June 30, 2022, at 99. The carrying value of the bonds at the redemption date was $174,960. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.

Answers

Answer and Explanation:

The journal entries are given below:

On Apr. 30

Bonds payable $124,000  

Loss on redemption of bonds( bal fig)   $18,228  

          Discount on Bonds payable($124,000 - $111,972) $12,028

          Cash ($124,000 × 1.05) 1,30,200

(Being redemption of bonds at 105 is recorded)  

On Jun. 30

Bonds payable $162,000

Premium on Bonds payable($174,960 - $162,000) $12,960  

          Gain on redemption of bonds ( bal fig) $14,580

          Cash($162,000 × .99) $160,380

(Being redemption of bonds at 98 is recorded)  

What types of firms lend to businesses needing capital or long-term funds?


A) Insurance companies


B) Pension and trust services


C) Commercial finance companies


D) Pension funds

Answers

Answer:

c

Explanation:

There are some Companies that lend money and treat loans. The type of firms lend to businesses needing capital or long-term funds is Commercial finance companies.

A financial institution (FI) is known to be a type of company that is involved in the business dealings where financial and monetary transactions such as deposits, loans, investments are made.

Commercial finance company is simply known to be a type of finance institution where loans are made available to manufacturers and wholesalers.

Conclusively, this Commercial finance company gives loans that can be paid back in a longer run to people who want to start up business.

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Scottie Barnes has an investment that will pay him $6,400, $6,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive

Answers

Answer:

Total FV= $34,947.44

Explanation:

Giving the following information:

Cash flows:

1= $6,400

2= $6,450

3= $7,225

4= $7,500

Opportunity cost= 10%

To calculate the future value of the cash flows, we need to use the following formula on each cash flow:

FV= Cf*(1+i)^n

i= opportunity cost

FV1= 6,400*1.1^4= 9,370.24

FV2= 6,450*1.1^3= 8,584.95

FV3= 7,225*1.1^2= 8,742.25

FV4= 7,500*1.1= 8,250

Total FV= $34,947.44

Trends that have contributed to the recent increase in eating disorders in the United States include a(n): a. More competitive workplace b. Increase in the number of divorces c. Focus on being thin as a measure of attractiveness d. Increase in the number of nonnutritional foods consumed ANS: C In most modern societies, a high value is placed on a slim body.

Answers

Answer:

The answer is "Option C".

Explanation:

In the US, mental illnesses have increasingly been on the rise, including patterns that are highly valuable in most modern societies. Anorexia and bipolar disorder are also included. These are complicated, severe but potentially destructive. These are also the result of a complex confluence of things such as biology, cell biology, sociology, culture, and the environment.

Which option identifies what can be inferred about Sophie's degree from the following scenario?
Sophie has graduated and obtained a job in the survey research field. She oversees a team of researchers who analyze the effectiveness of survey methodologies for a large market research
mirm.
O Sophie eamed a degree in survey methodology
O Sophie camed a professional researcher certification,
O Sophie eamed a bachelor's degree
O Sophie eamed an advanced degree

Answers

Answer:

O  Sophie earned a degree in survey methodology

Explanation:

Sophie is a manager in the survey company. Her team is made up of researchers who analyze the effectiveness of survey methodologies.    For  Sophie to effectively manage a team of researchers, she needs to be good at research work. This suggests that Sophie must have graduated with a degree in survey methodology. The minimum requirement for a manager in many professions is a degree in the relevant field of study.

The answer is NOT:

Sophie earned a professional researcher certification.

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