Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2013 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $2 million. The fiscal year ends on December 31.Required:a. Should this loss contingency be accrued, disclosed only, or neither? Explain. b. What loss, if any, should Sound Audio report in its 2013 income statement?c. What liability, if any, should Sound Audio report in its 2013 balance sheet?d. Prepare any journal entry needed.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

D. centrally planned economy hope this ! : d