Asked by Abtin Hoseini on Jun 27, 2024
Verified
Probable likelihood and estimable liability
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements
Estimable Liability
A financial obligation or debt that can be accurately estimated and measured for accounting and reporting purposes.
Probable Likelihood
The significant chance or high probability that an event will occur, often used in risk assessment.
Quick Ratio
A liquidity metric that indicates a company's capacity to pay off its short-term liabilities with quick assets (cash, marketable securities, and receivables).
- Understand and apply the concept of working capital, quick ratio, and current ratio.
- Distinguish between different types of liabilities and their disclosures in financial statements.
Verified Answer
MA
Learning Objectives
- Understand and apply the concept of working capital, quick ratio, and current ratio.
- Distinguish between different types of liabilities and their disclosures in financial statements.