Difficult to estimate amount of possible future contingency

Assignment Help Financial Management
Reference no: EM13804475

Many firms believe that it is very difficult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known? Should it be disclosed in the notes to financial statements? Explain.

Reference no: EM13804475

Questions Cloud

Conduct a work sampling : Researcher Adams wants to conduct a work sampling study and decides to research how much time is spent at the water coolers and what employees say there.
Break-even point-what is the incremental profit : Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 million, 50 earth stations are produced and sold each year, profits total $600,000; and the firm's assets (all equity financed)..
Difference between wants and needs : What is the difference between 'wants and needs'? Persuasion is a term often associated with advertisers. Post what you feel is the difference between the central route and the peripheral route to persuasion?
Discuss the actions that could be brought by the liquidator : Marcus was a director of a small proprietary company. The company had given Marcus several low interest loans to buy a house and land for private purposes. In view of these facts discuss the actions that could be brought by the liquidator
Difficult to estimate amount of possible future contingency : Many firms believe that it is very difficult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known? Should it be disclosed in the notes to financial sta..
Threat of terrorism harmful : To what extent is the threat of terrorism harmful to the T&T industry? Identify 5 elements of the tourism system and address what, if any, measures can be taken to protect them from terrorism. Be a specific as possible.
Advise sally on her rights and remedies : Sally has a small shareholding in Peat Pty Ltd which she inherited horn her father who was the son of the founder of the company. Advise Sally on her rights and remedies
Compared to chester by having a higher productivity index : A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Assume that Baldwin had a productivity index of 112% and that Chester had a productivity index of 103%. Using the l..
Quiz endocrine and cardiovascular systems disorders : Quiz Endocrine and Cardiovascular Systems Disorders Terminology

Reviews

Write a Review

Financial Management Questions & Answers

  Assuming a forecast bias of costs and cash flows

RV Ventures has designed a new fuel efficient motor for their deluxe RV. Product development will continue for the next four years at an estimated cost of $250,000 annually, with the first payment to be made immediately. Assuming a forecast bias of +..

  Ompute the current yield and capital gains yield

Gabbys garage issued a bond with a 10-year maturity, a $1,000 par value, a 10 percent coupon rate, and semi-annual interest payments. Two years after the bond was issued, the going rate of interest on similar-risk bonds fell to 6 percent. Suppose the..

  What is the initial margin requirement in october 2004

What is the initial margin requirement in October 2004 and is the company subject to anymargin calls and what is the impact of the strategy you propose on the price the company pays for copper?

  What is the expected annual contribution to retirement plan

ELO manufacturing is looking to hire a new plant supervisor. They have 2 qualified candidates, Charlie, 43 and Kevin, 36. Both would have a starting salary of $62,000. Each could expect a 3% cost of living raise each year.

  Summary of the four elements of financial management

Include a summary of the four elements of financial management. Include a summary of generally accepted accounting principles and general financial ethical standards

  Ahat is a ventures present value does the past matter

a.what is a ventures present value? does the past matter? what is meant by the statement if you are not using

  What is the probability that the colors match

Abe holds 1 green and 1 red jelly bean in his hand. Bea holds 1 green, 1 yellow, and 2 red jelly beans in her hand. Each randomly picks a jelly bean to show the other. What is the probability that the colors match?

  Consider how economic conditions affect the default risk

consider how economic conditions affect the default risk premium. do you think the default risk premium will likely

  Prepare a report on the different considerations that an

prepare a report on the different considerations that an mnc should keep in mind when obtaining capital from a foreign

  An umbrella liability policy

An umbrella liability policy:

  Current price of stock problem

The current price of Yusof Corporation stock is RM26.50 per share. Earnings next year should be RM2 per share and it should pay a RM1 dividend. The P/E multiple is 15 times on average. What price would you expect for Yusof Corporation’s stock in the ..

  What is the cost of the preferred stock

LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 12%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt?..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd