Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. The loss accrual should be
Question 19
On September 1, 2005, Cano & Co., a U. S. corporation, sold merchandise to a foreign firm for 250,000 francs. Terms of the sale require payment in francs on February 1, 2006. On September 1, 2005, the spot exchange rate was $. 20 per franc. At December 31, 2005, Cano ' s year end, the spot rate was $. 19, but the rate increased to $. 22 by February 1, 2006, when payment was received. How much should Cano report as a foreign exchange gain or loss in its 2006 income statement?
Question 20
During 2005, Rex Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2 % within 12 months following sale and 4 % in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2005 and 2006 are as follows: At December 31, 2006, Rex should report an estimated warranty liability of
Question 1
Which of the following should be disclosed for each reportable operating segment of an enterprise?
Question 2