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Discuss the accounting treatment for contingent liabilities. When should a company recognize a contingent liability on its balance sheet?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 3GI: When a company recognizes revenue during a period, what does it also recognize in its balance sheet?

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Discuss the
accounting treatment for contingent
liabilities. When should a company recognize a contingent
liability on its balance sheet?

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