5.In 2019, a lawsuit was against Peach Inc. It is probable that Peach Inc. will...
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5.In 2019, a lawsuit was against Peach Inc. It is probable that Peach Inc. will lose the lawsuit and the amount of loss can be reasonably estimated at $150,000How should Peach Inc. handle this loss contingency their financial records?
A. Accrue the loss and disclose in the notes
B. Disclose in the notes and do not record an accrual
C. Do nothing
D. Wait to see the outcome of the lawsuit before notifying users or recording a journal entry
12. Which of the following assets would be included in the long-term investment section of the balance sheet?
A. Investment in debt securities that is expected to be held to maturity (assuming held to maturity is greater than one year)
B. Investment in debt securities that is expected to be held to maturity when maturity is in 9 months
C. Accounts receivable
D. Marketable securities
5.In 2019, a lawsuit was against Peach Inc. It is probable that Peach Inc. will lose the lawsuit and the amount of loss can be reasonably estimated at $150,000How should Peach Inc. handle this loss contingency their financial records?
A. Accrue the loss and disclose in the notes
B. Disclose in the notes and do not record an accrual
C. Do nothing
D. Wait to see the outcome of the lawsuit before notifying users or recording a journal entry
12. Which of the following assets would be included in the long-term investment section of the balance sheet?
A. Investment in debt securities that is expected to be held to maturity (assuming held to maturity is greater than one year)
B. Investment in debt securities that is expected to be held to maturity when maturity is in 9 months
C. Accounts receivable
D. Marketable securities
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