How the liabilities affected the basic accounting equation

Reference no: EM131421384

Monsanto's 2008 annual report stated that the company's liabilities for environmental remediation and litigation contingencies are $262 million as of 8/31/09 ($272 million as of 8/31/08).

a. Describe how the liabilities affected the basic accounting equation.

b. What accounting principle is being followed by Monsanto? Explain.

c. Assume $25 million was actually spent in 2009 to remediate environmental problems. Draw a T-account and reconstruct 2009 changes for contingencies.

Reference no: EM131421384

Questions Cloud

Angles for the first three minima and the first three maxima : For the same wavelength, but passing through a double-slit setup where the slits are d = 0.50 mm apart, find the angles for the first three minima and the first three maxima.

Illuminated light bulb : You wish to create a 3 cm tall image on a screen 45 cm from a 6 cm tall illuminated light bulb. What focal length lens would you use and where would you place it?

Calculate dividends payable at the end of 2008 : Briefly explain why dividends on the statement of shareholders' equity do not equal dividends on the statement of cash flows.

Explain specific nature of the company you will be auditing : Consider and discuss the specific risks and nature of the company you will be auditing and create comprehensive work programs for the Inventory, Warehousing, and Payroll accounts and cycles.

How the liabilities affected the basic accounting equation : Monsanto's 2008 annual report stated that the company's liabilities for environmental remediation and litigation contingencies are $262 million as of 8/31/09 ($272 million as of 8/31/08).

Describe what you intend to do-how you will approach task : Your primary care physician operates a sound business practice that, at times, seems to suffer from several forms of waste. In your role as a dedicated patient engaged in the study of operations management, you are in a unique position to offer a..

Magnitude of the net magnetic field midway between the wires : Two long, parallel wires are separated by 3.0m. Each wire has a 25-Acurrent, but the currents are in opposite directions. Determine the magnitude of the net magnetic field midway between the wires.

Compute the company’s current ratio : Compute the company's current ratio if it invests $50,000 of the borrowed funds in fixed assets and keeps the rest as cash or short-term investments. To what dollar amount can current liabilities grow before the company violates the debt contract?

Atmosphere change from blue to red at sunset : People on Earth see the atmosphere change from blue to red at sunset. Consider an astronaut orbiting the Earth looking at their sunset. How will their sunset differ in color? Explain.

User Account

All Pages