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