Which of the following statements regarding The New York Home Business Endorsement (HO 07 01) is correct? The limits of liability are provided on a per occurrence basis B Coverage B applies to detached structures described in this endorsement and used for business The special liability amount for gold, currency and coins is raised to $5,000 This endorsement covers a business conducted at or from the insured's residence premises

Which of the following statements regarding The New York Home Business Endorsement (HO 07 01) is correct? The limits of liability are provided on a per occurrence basis B Coverage B applies to detached structures described in this endorsement and used for business The special liability amount for gold, currency and coins is raised to $5,000 This endorsement covers a business conducted at or from the insured's residence premises

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 9Q

See similar textbooks

Similar questions

Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income. Provision of doubtful debts of $4,200 for a detective agency. Speeding fines of $ 700 paid by an owner to a driver. An amount of $1,000 paid to a solicitor for preparing a partnership deed. Travel cost of a business executive to attend a trade fair in Munich paid by the employer. Newspapers purchased by an accountant who advises clients on financial and investment matters. For tax purpose, in what circumstances are individuals and companies treated as residents of Australia? Explain based on the the Income Tax Assessment Act 1936 (Cth) and relevant case law.
On January 12, 2021, a fire at a production facility damaged a number of adjacent buildings owned by other businesses. Pearl Company's insurance policy does not cover damage to property of others. insurance companies for those other businesses have billed Pearl for the estimated cost of P2.4million required to restore the damaged buildings. In the 2021 financial statements of Pearl Company, how much accrued liability should be recognized?
Matching: For each of the following situations, select the best answer concerning the classification of the liability. a. Electric bill owed to a local utility b. Fees charged by bankruptcy trustee c. Inventory valued at $61,895 collaterizing a note payable to a bank in the amount of $56,982 d. Land and building valued at $427,000 mortgaged by a bank loan in the amount of $517,000 e. Salaries payable to employees in the following amounts: $1250, $1876, $4500 Classification Options: Unsecured without Priority Partially Secured Unsecured with Priority Fully Secured
Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business depreciates a building with a book value of $12,000, using straight-line depreciation, no salvage value, and a remaining useful life of six years. B. An organization has a line of credit with a supplier. The company purchases $35,500 worth of inventory on credit. Terms of purchase are 3/20, n/60. C. An employee earns $1,000 in pay and the employer withholds $46 for federal income tax. D. A customer pays $4,000 in advance for legal services. The lawyer has previously recognized 30% of the services as revenue. The remainder is outstanding.
Referring to relevant statutory provisions and common law, discuss whether, for the current income year, the following amounts would be as an allowable deduction against assessable income. Provision for the estimated amount of trade debtors’ accounts, which might not be collected. An amount of $9,000 paid to a solicitor for preparing a partnership deed. Newspapers purchased by an accountant who advises clients on financial and investment matters. Travel cost of a business executive to attend a trade fair in London paid by the employer. 5. Speeding fines of $ 500 paid by an owner to a driver.
Referring to relevant statutory provisions and common law, discuss whether, for the current income year, the following amounts would be as an allowable deduction against assessable income. a) Provision for the estimated amount of trade debtors’ accounts, which might not be collected. b) An amount of $9,000 paid to a solicitor for preparing a partnership deed. c) Newspapers purchased by an accountant who advises clients on financial and investment matters. d) Travel cost of a business executive to attend a trade fair in London paid by the employer. e) Speeding fines of $ 500 paid by an owner to a driver.
On January 15, 2021, an explosion occurred at the Aizel Company plant causing extensive property damage to area buildings. By March 1, 2022, no claims hand been asserted against the entity but management and counsel concluded that it is likely that claims will be asserted and that it is reasonably possible that the entity will be responsible for damages. Management believed that P1,250,000 would be a reasonable estimate of the liability. The entity's P5,000,000 comprehensive public liability policy has a P250.000 deductible clause. The financial statements for 2021 were issued on March 31, 2022. What amount of loss from lawsuit should be reported in the income statement for 2021?
Referring to relevant statutory provisions and common law, discuss whether, for the current income year, the following amounts would be as an allowable deduction against assessable income. Provision for the estimated amount of trade debtors’ accounts, which might not be collected. An amount of $9,000 paid to a solicitor for preparing a partnership deed. Newspapers purchased by an accountant who advises clients on financial and investment matters. 4. Travel cost of a business executive to attend a trade fair in London paid by the employer.
Wizardry Corporation's purpose clause in its charter states, "To operate a home-cleaning service business." After a few years of successful operation, Wizardry is offered the challenge of landscaping a neighboring business. If Wizardry accepts the offer, it would be violating its charter under: O a. the estoppel theory. O b. the de facto doctrine. O c. the de jure doctrine. O d. the ultra vires doctrine.
Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swell’s attorney advises that the likelihood the customer will win is remote. GAAP requires at a minimum that this contingent liability be a. disclosed in the footnotes. b. disclosed in the footnotes, with ranges of potential loss. c. recorded as a journal entry, as well as disclosed in the footnotes. d. No disclosure is required.
Describe the conditions for when a contingent liability must be recorded through a journal entry, when it should be disclosed in the footnotes and when neither a journal entry nor disclosure is required? Assume that Mojito Corporation is sued by Dulcinea, Inc. for $1,000,000. Mojito’s attorneys believe that it is probable that the company will lose the suit and have to pay between $300,000 and $400,000 to Dulcinea. Based on your answer to a, what should Mojito do?
Damian is an entity which prepares financial statements, in accordance with International Financial Reporting Standards (IFRS), to 30 September each year. On 1 April 2018, Damian accepted delivery of a large and complex machine from a supplier. The agreed purchase price for the machine was £2 million. Damian received 10% trade discount. On 1 April 2018, Damian incurred direct costs of £50,000 in handling the machine and £25,000 in installing the machine at its premises. Although the machine was ready for use from 1 April 2018, Damian did not bring the machine into use until 30 April 2018. During April 2018 Damian incurred costs of £200,000 in training relevant staff to use the machine. The directors of Damian estimate that the machine is capable of being usefully employed in the business until 31 March 2023, and that it will have no residual value at that date. Damian uses the straight-line method for calculating the depreciation. On 31 March 2023, Damian will be legally required…