Cjdjejfjiv8568
24.10.2021 •
Business
Like many other large companies, The Cheesecake Factory Incorporated has several legal actions pending against it at any given time. It must accrue for and/or disclose certain contingent liabilities, such as pending or possible legal actions, in its financial statements and notes to its financial statements. The necessary reporting depends on the specific circumstances of the situations and the company's attorneys' assessment of the potential outcomes. HereLOADING... are four hypothetical legal situations that might face The Cheesecake Factory. Refer to situation A. With respect to its financial statements and notes to the financial statements, The Cheesecake Factory should: A. Disclose the contingent liability but not accrue for it B. Accrue for a contingent liability and disclose it C. Neither accrue nor disclose it
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