Existing claims related to product warranties and - 14633

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yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Fri 02 Nov, 2012
  • Request id: None
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Request Description

 

Existing claims related to product warranties and litigation as of December 31, 2010, indicate that it is probable that a liability has been incurred. However, as of December 31, 2010, the exact amount of the obligation cannot be reasonably estimated, but a range of possible amounts has been determined. Based on these facts, an estimated loss contingency should be

Answer

 

accrued

 

disclosed but not accrued

 

neither accrued nor disclosed

 

classified as an appropriation of retained earnings

Solution Description

 

Existing claims related to product warranties and litigation as of December 31, 2010, indicate that it is probable that a liability has been incurred. However, as of December 31, 2010, the exact amount of the obligation cannot be reasonably estimated, but a range of possible amounts has been determined. Based on these facts, an estimated loss contingency should be

Answer