Question Details

A company discloses gain contingencies in the notes 



True or false:
1.	Companies should recognize the expense and related liability for compensated absences in the year earned by employees.

	2.	Companies should accrue an estimated loss from a loss contingency if information available prior to the issuance of financial statements indicates that it is reasonably possible that a liability has been incurred.

	3.	A company discloses gain contingencies in the notes only when a high probability exists for realizing them.

4.	The expected profit from a sales type warranty that covers several years should all be recognized in the period the warranty is sold.

	5.	The fair value of an asset retirement obligation is recorded as both an increase to the related asset and a liability.





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