Reporting Loss Of Contingency

Write a few sentences about the following homes , indicating whether the eyepatch is a detriment incident that should be enter or disclosed in the financial dictation of Azteca airlines . If the situation is non a loss contingency , explain how (if at in each(prenominal) ) it should be reported in the go with s financial avouchment (Assume that all dollar measures are materialAztec estimates that 700 ,000 of its accounts receivable will name to be uncollectableThis campaign describes a loss contingency , as the loss is probable and the amount spate very effectual be estimated , i .e . Aztec stinkpot estimate the uncollectible accounts receivableThe comp some(prenominal) is in poor health and has previously suffered two heart attacksThis scenario does non describe a loss contingency . grant , the general healt h of the comp all is being referred . This is not something that can be measured and estimated with the help of a number , and past , we will not record it as a diary entry , rather we ll disclose it in the notes financial statementAs with any airlines , Azteca faces the risk that a future airplane frighten take away could arrive at considerable lossThis lawsuit describes the possibility of a loss contingency . As with most airlines , the probability of a plane crash is very small , i .e .

it is marvellous to happen , besides , incase of an airplane crash the amount lost can be reasonably estimated . Therefore , this case can be booked by a journal entry and too mentioned in th e footnotesAzteca is being sued for 10 meg ! for failing to adequately provide for passenger whose reservations where canceled as a result of the airline overbooking certain flights . This suit will not be heady for a year or moreThis case also depicts the situation of a loss contingency . In this case the loss is probable , i .e . it is likely to croak , and the amount can be estimated , i .e 10 one thousand thousand , it should be recorded in the accountsBIBLIOGRAPHYKieso , Kimmel Weygandt . Accounting Principles . 7 . Wiley , 2005...If you inadequacy to get a full essay, order it on our website: OrderEssay.net

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