MGMT 20000 Study Guide - Quiz Guide: Accounting, Contingent Liability, Current Liability
23 Mar 2019
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Monthly installment payments on a note payable include both an amount that represents interest and an amount that represents a reduction of the outstanding loan balance: true, false. A contingency is best described as a(n) legal liability: probable liability, potential liability, estimated liability. Kensal green, inc. is facing a class action lawsuit in the upcoming year. It is probable that the corporation will have to pay a settlement of approximately ,000,000 in the next twelve months. Bampton corporation filed suit against cambridge, inc. , seeking damages for patent violations. Cambridge s legal counsel believes it is probable that cambridge will settle the lawsuit for an estimated amount in the range of ,000 to ,000,000, with all amounts in the range considered equally likely. Subaru estimates warranty parts & labor costs in the same year a vehicle is sold. This best follows which of the following accounting principles: historical cost, matching, consistency relevance.
