Chapter 11, Problem 11.1BYP

(a)

To determine

Annual Report: Annual report is a detailed report about a company’s activities during a particular period that is its accounting period. It is prepared for the stockholders of the company and the general public.

Financial Statements: A part of annual report that is attributed to the financials of the company for an accounting period is called financial statements. These include income statement, statement of retained earnings, balance sheet and cash flow statement.

Current Liability: Every company has some debts or liabilities which need to be paid in less than one year or during current accounting period. Those debts or liabilities are called current liabilities.

Contingent Liabilities: Sometimes companies are not sure if a particular liability is certain or not because of its time and other market or company related factors. These types of liabilities are called contingent liabilities.

To identify: The amount of total current liabilities at September 28, 2013 and the change in total current liabilities from previous year for Company A.

(b)

To determine

To identify: The conditions under which Company A recognizes the liabilities for contingencies.

(c)

To determine

To identify: The component of total current liabilities on September 28, 2013.