Audit and Assurance - Effects of post-balance sheet events 3. Define contingent liability 4. Explain the accounting treatment for contingent liability under MFRS 137. Give TWO (2) examples of contingent liability.

Q: A provision should be recognized when: O a. Present obligation from a past event, outflow that will…

A: Provision means an amount set side now to be payable in future because of some past event and…

Q: What types of contractual obligations must be disclosedin great detail in the notes to the balance…

A: Balance Sheet: A balance sheet is a financial statement that reports the financial position of the…

Q: Define Refund Liability.

A: Refund liability: When a company sells its products with a right of return to customers it has to…

Q: Which of the following statements are true? а. Revenue should be generally recognized when the…

A: According to the accrual basis of accounting, revenue is recognized when the performance is made.

Q: What is meant by contingent Liability? How is it shown in final accounts?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: In accordance to MFRS 101, Presentation of Financial Statements, describe presentation requirements…

A: The Malaysian Financial Reporting Standards (MFRS) 101, "Presentation of Financial Statements," sets…

Q: 15. If an entity gives a product warranty that has been issued directly by a manufacturer, dealer or…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The balance found in the revenue account of general insurance companies is treated as:

A: Revenue account is the one that includes all the revenue earned and outlays incurred by an entity.

Q: When the amount of a contingent liability cannot be reasonably estimated but its likelihood is…

A: There are three types of contingent liabilities and their treatment   SR. NO. TYPE TREATMENT…

Q: 3.  which of the following transactions will result in the increase and decrease in liability? a.…

A: A) Payment of a loan involves cash payment which is an asset account. Due to this, both asset and…

Q: Describe Liabilities from Advance Collections.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: The payment of a liability

A: The liability is the amount due to be paid by the business to its creditors.

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: Under valuation balance sheet the net liability is the difference between: Premium to be received…

A: Net Liabilities:- It is an excess of Accounts Payable over Accounts Receivables. It includes all…

Q: What exactly is a genuine account?

A: Genuine account: Genuine account is generally referred to as a real account. Real accounts are…

Q: When should a contingent liability be recognized and reported on the financial statements?  A.…

A: Contingent liability: A liability can occur on future uncertain events.

Q: What is an asset and liability per the IASB framework definition for the preparation and…

A: Financial statement includes: 1) Balance sheet  2) Income statement 3) Cash flow statement  4)…

Q: contingent liabilities? Which two conditions have to be met in der to report a contingent liability…

A: The foundation for determining investor returns and analyzing a company's financial structure is the…

Q: 1. Define and briefly discuss a loss contingency.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Define current liabilities and list the typical liability categories included in this…

A: Current liability: Current liability is a debt that the companies need to pay the debts from…

Q: The adjusting entry to record a contingent liability requires a debit to a loss (or expense) account…

A: Contingent liability is a potential liability that arises as a result of past transactions but the…

Q: When recognizing a contingent liability, if the future event is probable (likely) and the amount can…

A: It is a potential obligation that may arise from past events but its existence will be confirmed…

Q: 7 What will a contingency note contain?   Review Later   A circumstance where a company may…

A: Introduction:- A contingent liability is a liability or a potential loss that may occur in the…

Q: 3. A liability created for receiving cash for future services to be provided is termec Oservice…

A: The accrual basis accounting records the revenue and expenses as soon as they are incurred…

Q: 21. What is the form that filled out by insured if a loss is suffered? *

A: Takaful is a sort of Islamic insurance in which members combine their funds to protect one another…

Q: When a liability is paid, which account should be credited? A, Cash B.Accounts payable

A: Cash (money or coins) is legal tender that may be used to exchange products, debts, or services. It…

Q: What is the normal balance for liability accounts?

A: Liability is an obligation that an entity has to pay to its creditors, lenders, suppliers etc.

Q: What is the difference between a liability and an expense in accounting?

A: A company's future debt or obligation to a third party is known as a liability. This can include…

Q: GAAP requires that debt issue costs be recorded separately and amortized over the term of the…

A:

Q: 1.Define liabilities in your own words. 2.What are the essential characteristics of an accounting…

A: Solution:- 1)Definition of liability as follows under:- Liabilities are debts of a company or…

Q: Demonstrate the appropriate accounting treatment for contingencies, includingunasserted claims and…

A: Contingencies refer to a situation that occurs in the accounting period for which the outcome is not…

Q: Is there a certain order to list the liability accounts in the balance sheet?

A: A liability is an obligation the settlement of which requires outflow of economic resources of the…

Q: Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ) Required:…

A: Accrued Liabilities: Accrued liabilities are those expenses that are incurred but not yet paid.…

Q: describe general principles of revenue recognition and accrual accounting, specifi c revenue…

A: According to IFRS, a company should recognize revenue from the sale of goods whenever the following…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.