Your company was recently served with a lawsuit. The outcome of the litigation will not be determined for several months, but it could result in a materially large settlement to be paid by your corporation According to GAAP, what action should you take? SELECT ONLY ONE Take no action, because it may be dismissed Provide a disclosure on financial statements regarding the pending litigation Wait for the outcome of the lawsuit to address stakeholders Ensure information regarding the lawsuit is not revealed Provide a statement to employees and stockholders

Some new institution question and answer enquired students to indicate what they admit is the most crucial important point for a student to do to be able to score success. One which response stood out from the rest was practice. People who usually are successful do not become successful by being born. They work hard and perseverance their lives to succeeding. If you tend to obtain your goals, keep this in mind! shown below are one of the answer and question example that you can easily use to practice and enrich your understanding and also give you insights that can help you to maintain your study in school.

Question:

Your company was recently served with a lawsuit. The outcome of the litigation will not be determined for several months, but it could result in a materially large settlement to be paid by your corporation According to GAAP, what action should you take? SELECT ONLY ONE Take no action, because it may be dismissed Provide a disclosure on financial statements regarding the pending litigation Wait for the outcome of the lawsuit to address stakeholders Ensure information regarding the lawsuit is not revealed Provide a statement to employees and stockholders

Answer:

Answer:

According to GAAP,Provide a disclosure on financial statements regarding the pending litigation

Explanation:

According to GAAP, Provide a disclosure on financial statements regarding the pending litigation.

A statement disclosure will communicate relevant information not captured in the statement itself  to a company’s stakeholders.

According  to GAAP the financial statements must have disclosure notes.

the other choices are incorrect as they do not provide any defense or protective measure against the case filed.

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From the answer and question examples above, hopefully, they are able to assist the student resolve the question they had been looking for and take notice of every detail declared in the answer above. Then might possibly have some sharing in a group discussion and also learning with the classmate in reference to the topic, so another student also procure some enlightenment and still keeps up the school learning.

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