Multiple Choice
The Blaxland Ltd filed a lawsuit against D-Mart Machineries for failure to comply with the specifications of the factory equipment that they ordered and received.The solicitors for Blaxland Ltd strongly believe that the company will receive $50,000 to $100,000 if they win the case.Which action is consistent with the Framework?
A) Blaxland Ltd.should recognise a receivable of $75,000,the expected value of the gain.
B) Blaxland Ltd.should recognise a receivable of $50,000,a conservative estimate of the gain.
C) Blaxland Ltd.should not recognise the receivable until it is probable that they have won the case.
D) Blaxland Ltd.should not recognise the receivable because while the solicitor is expecting to win the case,the receivable cannot be estimated reliably.
E) None of the given answers.
Correct Answer:
Answered by ExamLex AI
Correct Answer:
Answered by ExamLex AI
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