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Cole Pharmaceuticals has been sued for damages as the result of accidental deaths caused by a newly released drug

Accounting

Cole Pharmaceuticals has been sued for damages as the result of accidental deaths caused by a newly released drug. The lawsuit has already cost them $1.6 million, and they expect additional related lawsuits to cost them $7.4 million. Therefore, Cole restricted $5 million in cash to partially cover the costs of the lawsuits. Cole would likely disclose the relationship between the restricted cash and the lawsuit liabilities with a

 

  • A: parenthetical explanation. 
  • B: supporting schedule. 
  • C: note. 
  • D: cross-reference. 

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Cole Pharmaceuticals has been sued for damages as the result of accidental deaths caused by a newly released drug. The lawsuit has already cost them $1.6 million, and they expect additional related lawsuits to cost them $7.4 million. Therefore, Cole restricted $5 million in cash to partially cover the costs of the lawsuits. Cole would likely disclose the relationship between the restricted cash and the lawsuit liabilities with a cross reference.

The correct option is D "cross-reference".