Top Posters
Since Sunday
I
3
p
2
w
2
y
2
J
2
Q
2
r
2
o
2
e
2
j
2
d
2
T
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
H3Ko H3Ko
wrote...
Go to Answer
Posts: 4891
Rep: 45 0
8 years ago
A contingency was evaluated at year-end.  Management felt it was probable that this would become an actual liability and the amount could be reasonably estimated. If this was not reported on the balance sheet or in the notes to the financial statements, what is the effect on the financial reporting of the company?
A) The liabilities on the balance sheet would be understated.
B) There would be no effect.
C) The net income of the company would be understated.
D) The information about the transaction would be inadequately disclosed in the notes.
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
Read 648 times
3 Replies
Replies
Answer verified by a subject expert
Mrgo-breedMrgo-breed
wrote...
#1
Top Poster
Posts: 2227
Rep: 276 0
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

H3Ko Author
wrote...
#2
8 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
wrote...
#3
4 years ago
thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1684 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 829
  
 538
  
 5103