A restaurant is being sued because a customer claims to have found a bug in her chili The company's lawyers believe there is only a remote possibility that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management?
A) The situation should be described in a note to the financial statements.
B) The possible liability should not be shown in the financial statements.
C) The liability should be estimated and accrued as an expense.
D) An expense must be matched to the period in which the incident occurred.
B
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The production of a particular product consists of the following work elements. If the cycle time is 4 minutes and the work-element times are as follows, what is the theoretical minimum number of stations?
Work Element Time (min) 1 2.4 2 0.5 3 2.1 4 2.0 5 2.7 6 1.1 7 2.0 8 2.7 9 1.6 10 1.4 A) fewer than or equal to three stations B) four stations C) five stations D) more than five stations
Capital rationing is a constraint placed on the amount of funds that can be invested in a given
time period. Indicate whether the statement is true or false