The owners of Deck Chairs Overboard Bistro Pty Ltd have alerted the accountant of the...
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The owners of Deck Chairs Overboard Bistro Pty Ltd have alerted the accountant of the business as at 30 June 2020 that a customer suffered food poising whilst eating at the Bistro. The customer has made a claim in the Melbourne Magistrates Court against the entity. Currently, no decision has been made at, 30 June by the Court and no compensation for damages can be reliably measured. How would the claim for compensation in the Magistrates Court be reported in the financial reports, the Income Statement, Balance Sheet, and the Cash Flow Statement? Group of answer choices
No impact in the Income Statement, No impact on the Balance Sheet however a note to the accounts and no impact on the Cash Flow Statement.
No impact in the Income Statement and no impact on the Balance Sheet and cash outflow in Operating Activities in the Cash Flow Statement.
An increase in expense in the Income Statement, an increase in Current Liabilities in the Balance Sheet and no impact on the Cash Flow Statement.
No impact on the Income Statement, an increase in Current Liabilities in the Balance Sheet and no impact on the Cash Flow Statement.
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