The question to be resolved is what kind of treatment should be provided if the loss confirmation is probable and the amount can be reasonably estimated. In establishing its framework for reporting contingencies, GAAP recognizes two kinds of subsequent events…
Due diligence is the process of screening a business entity prior to entering into a business contract, whether it’s with the vendor, client, or third party. It’s also a foundational element of good governance, calling for individuals and groups to…
The most effective document management software can help companies manage digital data more effectively. Users can keep track of revisions of versions, changes, and revisions to determine the appropriate version to fulfill a specific need. They also can prevent the…
The company would record this warranty liability of $120 ($1,200 × 10%) to Warranty Liability and Warranty Expense accounts. Since this condition does not meet the requirement of likelihood, it should not be journalized or financially represented within the financial…