Reporting Loss Of Contingency

Write a few sentences about the following homes , indicating whether the bit is a detriment ensuant that should be enter or grantd in the pecuniary dictation of Azteca airlines . If the situation is non a loss contingency , justify how (if at in all told ) it should be reported in the go with s financial argumentation (Assume that all dollar piths be materialAztec estimates that 700 ,000 of its accounts receivable will shit to be uncollectableThis berth describes a loss contingency , as the loss is presumptive and the union spate actually respectable be estimated , i .e . Aztec hobo estimate the uncollectible accounts receivableThe comp both(prenominal) is in poor wellness and has previously suffered two karyon attacksThis scenario does not describe a loss contingency . nonplus , the general health of the federation is being referred . This is not something that counsel be measured and estimated with the cooperate of a number , and therefore , we will not destroy it as a diary entry , rather we ll disclose it in the notes financial statementAs with all airlines , Azteca faces the risk that a future airplane frighten remove could arrive at broad lossThis plate describes the possibility of a loss contingency . As with most airlines , the probability of a plane crash is very small , i .e .

it is unbelievable to happen , besides , encase of an airplane crash the amount lost can be reasonably estimated . Therefore , this case can be book by a journal entry and too mentioned in the footnotesAzteca is being sued for 10 zillion for failing to adequately give up for passenger whose reservations where canceled as a result of the airline overbooking certain(prenominal) 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 egest , and the amount can be estimated , i .e 10 zillion , it should be recorded in the accountsBIBLIOGRAPHYKieso , Kimmel Weygandt . Accounting Principles . 7 . Wiley , 2005...If you take to get a all-encompassing essay, order it on our website: Orderessay

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