Which one of the following category unearned revenue belong to? a. Current liability b. Limited liability c. Contingent liability d. Lon-term liability
Which one of the following category unearned revenue belong to? a. Current liability b. Limited liability c. Contingent liability d. Lon-term liability
Which one of the following category unearned revenue belong to? a. Current liability b. Limited liability c. Contingent liability d. Lon-term liability
17) Which one of the following category unearned revenue belong to?
a.
Current liability
b.
Limited liability
c.
Contingent liability
d.
Lon-term liability
Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
