Ch.13 current liabilities and contingencies

Question 1

Future event:
probable
Amount is reasonably estimable: ?
Financial reporting treatment: ?

Answer 1

Amount is reasonably estimable: yes or no
if yes-
Financial reporting treatment: accrue loss
if no-
Financial reporting treatment:disclose loss

Question 2

Future event:
reasonably possible
Amount is reasonably estimable: ?
Financial reporting treatment: ?

Answer 2

Amount is reasonably estimable: N/A
Financial reporting treatment: disclose loss

Question 3

Future event:
remote
Amount is reasonably estimable: ?
Financial reporting treatment: ?

Answer 3

Amount is reasonably estimable: N/A
Financial reporting treatment: N/A

Question 4

most consumer products are accompanied by a

Answer 4

guarantee