ADM 2342 Study Guide - Final Guide: Inventory Turnover, Financial Statement, Accounts Payable
11 Jul 2014
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18 d b d c b a a d b b d b b d a a a c. 1: it is likely that the event that gives rise to the obligation will happen. And: the amount of the obligation can be reasonably estimated. Plastic should report the information on the negotiated contract in footnotes to financial statements. Because of the short time to maturity, the difference between the present and gross value of current liabilities is not material. If the company is liquidated, assets of the company are distributed among creditors and shareholders. Preferred shareholders receive their share before common shareholders. Granting stock options at the exercise price below the market price at the date of the grant makes no sense from the incentive point of view. In such case, the employee will be able to make an effortless gain on stock options right away.
