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Case 10.3 - company and they company knowingly operates on...

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Jason Wilcox Case 10.3 Introductory Accounting 1. This is a loss contingency and should be noted as one in the financial statements because the loss occurred is an uncertainty until financial statements are prepared and at the time there may have just been an error and nothing was uncollected. 2. This is not a loss contingency, because even though the president is in poor health is does not affect the day to day operations. There is still management under him to take care of his responsibilities. 3. This is not a loss contingency because the risk of a crash is part of being an airline
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Unformatted text preview: company and they company knowingly operates on a day to day basis with the chance of a crash. 4. This is a loss contingency and needs to be noted in the financial statements because until the case is resolved the amount is uncertain. Even is Aztec thinks they will lose they still need to document it because a judge could award more than they are estimating. Or in best case scenario they win their case and do not need to pay anything except for lawyer fees....
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