in test. i need answer asap
Match the contingent liability scenario with the proper accounting treatment. The Electric Company is the defendant in a $1 million lawsuit filed by one of its customers, ASP. The litigation is in final appeal, and legal counsel advises that it is probable that The Electric MCompany will lose the lawsuit. The estimated amount is $800,000. How should The Electric Company account for this event? The Electric Company is the defendant in a $1 million lawsuit filed by one of its customers, ASP. The litigation is in final appeal, and legal counsel advises that it is probable that The Electric Company will lose the lawsuit. The estimated amount is $800,000. How should The ASP account for this event? A Create a liability but do NOT disclose. The Environmental Protection Agency (EPA) is in the process of investigating a possible water Disclose in the notes only contamination issue at the manufacturing facility of Northwest Forest Products. The EPA has not yet proposed a penalty assessment Management feels an assessment is probable, however, they c Create a liability and Disclose in the Notes -are unable to estimate the penalty amount. How should Northwest Forest Products report this situation in its current financial statements? D. Do NOT Disclose and Do NOT create a liability Great Vacations Resort is a defendant in litigation involving a swimming accident at one of their locatios. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million Old Time Printing recently became aware of a design flaw in one of its laser printers. A product recall appears reasonably possible. Such an action would likely cost the company between $500,000 and $900,000 Match the contingent liability scenario with the proper accounting treatment. The Electric Company is the defendant in a $1 million lawsuit filed by one of its customers, ASP. The litigation is in final appeal, and legal counsel advises that it is probable that The Electric MCompany will lose the lawsuit. The estimated amount is $800,000. How should The Electric Company account for this event? The Electric Company is the defendant in a $1 million lawsuit filed by one of its customers, ASP. The litigation is in final appeal, and legal counsel advises that it is probable that The Electric Company will lose the lawsuit. The estimated amount is $800,000. How should The ASP account for this event? A Create a liability but do NOT disclose. The Environmental Protection Agency (EPA) is in the process of investigating a possible water Disclose in the notes only contamination issue at the manufacturing facility of Northwest Forest Products. The EPA has not yet proposed a penalty assessment Management feels an assessment is probable, however, they c Create a liability and Disclose in the Notes -are unable to estimate the penalty amount. How should Northwest Forest Products report this situation in its current financial statements? D. Do NOT Disclose and Do NOT create a liability Great Vacations Resort is a defendant in litigation involving a swimming accident at one of their locatios. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million Old Time Printing recently became aware of a design flaw in one of its laser printers. A product recall appears reasonably possible. Such an action would likely cost the company between $500,000 and $900,000
