Which of the following is a contingency that would likely require a provision? Sales tax payable. Premium customer offers. Potential liability on a product where none have yet been sold. Potential claims regarding extended warranties.
The correct answer is B. Explanation: The contingency is the plan, that is, the course of action for the business should an unforeseen situation occur. So, the contingency plan is the plan or method that ensures the business is prepared for whatever happens. The contingency reserve is information available before the publication of the financial statements that indicates that the assets have suffered an impairment and that the amount of the loss can be reasonably estimated. The most likely need for roll-up is for premium customer offers as it is the sales promotion technique where customers receive two or more products and pay the lower price for the combined products.
Walkthrough x=3: It’s very simple I saw that there was only one term (5x) and I thought if it was 15 what should I multiply everything the rest to get there? Well if 5x would become 15 then x should be 3 so put the 3 in the x for the other equations and you get 15 for the others. So this is it. : )
abbacbdd none of them are correct because they are all sources of US law