How the liabilities affected the basic accounting equation

Assignment Help Finance Basics

Reference no: EM131408230

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: EM131408230

Questions Cloud

What kind of liability is dividends payable : Briefly explain why dividends on the statement of shareholders' equity do not equal dividends on the statement of cash flows.

Structure or convert to a vat system and why : In 250 words and on the basis of tax efficiency and tax equity, would you prefer the U.S. government keep it's income and payroll tax structure or convert to a VAT system and why?

Why do children with adhd have to be placed on ritalin : Why do children with ADHD have to be placed on Ritalin or any other stimulants, instead of homeopathic remedies?

Case study-copper kettle catering : Copper Kettle Catering (CKC) is a full-service catering company that provides services ranging from box lunches for picnics or luncheon meetings to large wedding, dinner, or office parties.

How the liabilities affected the basic accounting equation : Assume $25 million was actually spent in 2009 to remediate environmental problems. Draw a T-account and reconstruct 2009 changes for contingencies.

Identify and discuss a quantitative research design : Identify and discuss a quantitative research design that would best fit with the clinical topic which is patient falls with injury

How is obedience to authority exemplified in the film : Compare and contrast the movie with the real Stanford Prison experiment?Define cognitive dissonance and use one character to explain how cognitive dissonance is reflected in the movie.How is obedience to authority exemplified in the film?Do you think..

Vehicle ownership distribution in given community : At the 0.05 level of significance, can we reject the possibility that the vehicle-ownership distribution in this community differs from that of the nation as a whole?

Compute the actual annual interest rate on the note : On December 1, Spencer Department Store borrowed $19,250 from First Bank and Trust. Spencer signed a ninety-day note with a face amount of $20,000. The interest rate stated on the face of the note is 15 percent per year.

User Account

All Pages