Ask Question
BusinessBusiness
20 July, 11:02

Dexter Tours is a defendant in litigation involving an accident that occurred during a cruise. The company is sued for $5 million in damages. The likelihood of a payment occurring is probable, and the amount is estimated to be $3 million. What the company required to do in this scenario?

+2
Answers (1)
  1. 20 July, 11:28
    0
    Answer The company should disclose a contingent liability of $3m

    Explanation:

    A contingent liability arises from past events but it's occurrence depends on

    existence or non existence of future events beyond the firm's control

    Snce it's only probably that the case will be awarded against the company they are to disclose the estimated amount of $3m dollar as contingent liability
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dexter Tours is a defendant in litigation involving an accident that occurred during a cruise. The company is sued for $5 million in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Use the following selected data from Business Solutions's income statement for the three months ended March 31, 2016, and from its March 31, 2016, balance sheet to complete the requirements below: computer services revenue, $25,307;
Answers (1)
General Juan Peron, the former dictator of Argentina, once said of the labor market in his country, "Prices have gone up the elevator, and wages have had to use the stairs." a. In this situation, what was happening to real wages in Argentina? b.
Answers (1)
According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products from other nations that could be produced in their home nation. What is the reasoning behind this idea
Answers (1)
Your Group has just been stranded in the wilderness in the middle of a snowstorm in mid-January. You are dressed for the winter, but not a snowstorm. You are at least 20 miles from the nearest town.
Answers (1)
Controlled research studies indicate that the value of emdr is in part due to the effectiveness of
Answers (1)
New Questions in Business
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)
Home » Business » Dexter Tours is a defendant in litigation involving an accident that occurred during a cruise. The company is sued for $5 million in damages. The likelihood of a payment occurring is probable, and the amount is estimated to be $3 million.
Sign Up Forgot Password?