Classify the following event as mostly systematic, mostly unsystematic: "A manufacturer loses a multimillion-dollar product liability suit"   a. Systematic   b. Unsystematic   Classify the following event as mostly systematic, mostly unsystematic: "A supreme court decision substantially broadens producer liability for injuries suffered by product users"   a. Systematic   b. Unsystematic

True or false: the new revenue recognition standard is aimed at a few industries and will not affect most companies

Curtis Company is facing a potential lawsuit. Curtis’s lawyers think that it is reasonably possible that it will lose the lawsuit. How should Curtis report this lawsuit?

Suppose an accountant discovers that the company holds substantial amounts of inventory that are now obsolete and worthless. Should the accountant report the truth, write off the inventory as an asset, and take a loss on obsolete inventory in earnings? Suppose the accountant also knows that the company is already in distress. Should the accountant seek ways to avoid or delay recognizing inventory losses that will cause the company to report lower earnings and thereby experience a drop in stock price and potential bankruptcy? What if the accountant knows the company is growing quickly and generating healthy profits?