When should a contingent liability be recognized and reported on the financial statements?  A. Reporting contingent liabilities do not require they be probable or reasonably estimated  B. When the contingent liability is probable  C. When a reasonable estimation can be made of the amount owed D. When the contingent liability is probable and a reasonable estimation can be made of the amount owed

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 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: 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: 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: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: A. It is probable that an outflow of economic benefits will be required to settle an obligation B.…

A: Option D

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: 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: Failure to accrue interest expense results ina. an overstatement of net income and an understatement…

A: Amswer: a. an overstatement of net income and an understatement of liabilities.

Q: An obligation that is contingent on the occurrence of a future event should be reported in the…

A: Financial statements: The financial statements refer to the combination of a various statements like…

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: Which of the following sets of conditions would give rise to the accrual of a contingency under…

A: Under current generally accepted accounting principles (GAAP), Accrual of a loss contingency is…

Q: Fair value is used to value which of the following balance sheet accounts? a. Prepaid expenses;…

A: The value of financial instruments, such as debt securities, that are traded or sold is sometimes…

Q: Must obligations be known contractual debts in order to be reported as liabilities?

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

Q: Which statement is incorrect in the measurement of a provision? * a. The risks and uncertainties…

A: Provisions are made when there is ambiguity about the relative price of discharge of these…

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: The accrual of a contingent liability and the related loss should be recorded when the a. Loss…

A: Accrued liability are refer as when probability of occurrence of the loss contingency is probable…

Q: A contingent liability should be recorded in the financial statements when the:   Select one: a.…

A: Contingent liability is the liability that arises on an event may or may not happen. It is recorded…

Q: When the likelihood a liability will occur is remote but the amount can be estimated, the liability…

A: Financial statements are records that detail an organization's performance, cash flows, and…

Q: Which of the following is most likely to be classified and reported as a current liability?

A: Liabilities are reported in the balance sheet of the company.

Q: Which of the following is correct about contingent liabilities and provisions?     The terms are…

A:

Q: Which of the following is usually not an accrued liability? Select one: a. Notes payable b. Taxes…

A: Accrued liability refers to the amount of liability that represents the expenses for the current…

Q: The adjustment to be made for provision for doubtful debt is   O a. Credit profit and loss account…

A: The provision for doubtful debts is also known bad debts or losses on account receivables.

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Suppose the analysis of a loss contingency indicates that an obligation is not probable. What…

A: Contingent Liability  Contingent liability is one form of liability that arises based on a…

Q: Which of the following is not a liability?

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: Define contingent liability. What is the criteria to determine whether or not to report the…

A: Liability means the obligation to pay to the other parties by transferring the economic benefits…