Register now or log in to join your professional community.
Robb’s legal counsel believes it is likely Dawn will prevail, and the amount of damages will be in the range of $300,000 to $350,000. What would be the impact, if any, on the balance sheet for the fiscal year end if Robb makes a provision for the lawsuit in the financial statements?
a. Liabilities would be reduced and shareholders’ equity would be increased.
b. Liabilities would be increased and shareholders’ equity would be reduced.
c. Assets would be increased and liabilities would be reduced.
d. There would be no impact on the financial statements.
b. >>>>>>>>Liabilities would be increased and shareholders’ equity would be reduced.
I agree with Mr. Carlo
b. Liabilities would be increased and shareholders' equity would be reduced.
B)
Liabilites would be increased as a counterpart of the provision and the equity would be reduced after recording a lower net income following the provision.
b. Liabilities would be increased and shareholders’ equity would be reduced.-------------------------------
good answers
from all
b ............................................................
