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Business Accounting Financial Accounting: Tools for Business Decision Making, 8th Edition

Contingencies Contingencies are referred to as the undefined future events that may be turn out to be the possible liabilities for the organizations in fore coming period. Examples of contingent liabilities are law suits, environmental cleanup obligations, and warranties for products. To Explain: Why the Company does not have to record these contingent liabilities.

Contingencies Contingencies are referred to as the undefined future events that may be turn out to be the possible liabilities for the organizations in fore coming period. Examples of contingent liabilities are law suits, environmental cleanup obligations, and warranties for products. To Explain: Why the Company does not have to record these contingent liabilities.

Solution Summary: The author explains that contingent liabilities are undefined future events that may be turn out to be liabilities for organizations in forecoming period.

Financial Accounting: Tools for Business Decision Making, 8th Edition

Financial Accounting: Tools for Business Decision Making, 8th Edition

8th Edition

ISBN: 9781118953808

Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

Publisher: WILEY

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Question

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.

Chapter 10, Problem 10.19E

To determine

Contingencies

Contingencies are referred to as the undefined future events that may be turn out to be the possible liabilities for the organizations in fore coming period. Examples of contingent liabilities are law suits, environmental cleanup obligations, and warranties for products.

To Explain: Why the Company does not have to record these contingent liabilities.

To determine

To Comment: If any implications for analysis of the financial statements.

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Chapter 10, Problem 10.18E

Chapter 10, Problem 10.20E

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Chapter 10 Solutions

Financial Accounting: Tools for Business Decision Making, 8th Edition

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - (a) Identify three taxes commonly paid by...Ch. 10 - Prob. 7Q Ch. 10 - Prob. 8Q Ch. 10 - Contrast these types of bonds: (a) Secured and...Ch. 10 - Prob. 10Q

Ch. 10 - Prob. 11Q Ch. 10 - Prob. 12Q Ch. 10 - Prob. 13Q Ch. 10 - Lee and Jay are discussing how the market price of...Ch. 10 - Prob. 15Q Ch. 10 - Prob. 16Q Ch. 10 - Prob. 17Q Ch. 10 - Prob. 18Q Ch. 10 - Prob. 19Q Ch. 10 - Prob. 20Q Ch. 10 - Prob. 21Q Ch. 10 - Prob. 22Q Ch. 10 - Prob. 23Q Ch. 10 - Prob. 24Q Ch. 10 - Prob. 25Q Ch. 10 - Prob. 26Q Ch. 10 - Prob. 27Q Ch. 10 - Prob. 28Q Ch. 10 - Prob. 29Q Ch. 10 - Prob. 30Q Ch. 10 - Prob. 31Q Ch. 10 - Prob. 10.1BE Ch. 10 - Prob. 10.2BE Ch. 10 - Prob. 10.3BE Ch. 10 - Prob. 10.4BE Ch. 10 - Prob. 10.5BE Ch. 10 - Prob. 10.6BE Ch. 10 - Prob. 10.7BE Ch. 10 - Prob. 10.8BE Ch. 10 - Prob. 10.9BE Ch. 10 - Prob. 10.10BE Ch. 10 - Prob. 10.11BE Ch. 10 - Prob. 10.12BE Ch. 10 - Prob. 10.13BE Ch. 10 - Prob. 10.14BE Ch. 10 - Prob. 10.15BE Ch. 10 - Prob. 10.16BE Ch. 10 - Prob. 10.17BE Ch. 10 - Prob. 10.18BE Ch. 10 - Prob. 10.19BE Ch. 10 - Prob. 10.1ADIE Ch. 10 - Prob. 10.1BDIE Ch. 10 - State whether each of the following statements is...Ch. 10 - Prob. 10.3ADIE Ch. 10 - Prob. 10.3BDIE Ch. 10 - Prob. 10.4DIE Ch. 10 - Prob. 10.1E Ch. 10 - Prob. 10.2E Ch. 10 - Prob. 10.3E Ch. 10 - Prob. 10.4E Ch. 10 - Prob. 10.5E Ch. 10 - Prob. 10.6E Ch. 10 - Prob. 10.7E Ch. 10 - Prob. 10.8E Ch. 10 - Prob. 10.9E Ch. 10 - Prob. 10.10E Ch. 10 - Prob. 10.11E Ch. 10 - Prob. 10.12E Ch. 10 - Prob. 10.13E Ch. 10 - Prob. 10.14E Ch. 10 - Prob. 10.15E Ch. 10 - Prob. 10.16E Ch. 10 - Prob. 10.17E Ch. 10 - Prob. 10.18E Ch. 10 - Prob. 10.19E Ch. 10 - Prob. 10.20E Ch. 10 - Prob. 10.21E Ch. 10 - Prob. 10.22E Ch. 10 - Prob. 10.23E Ch. 10 - Prob. 10.24E Ch. 10 - Prob. 10.25E Ch. 10 - Prob. 10.1AP Ch. 10 - Prob. 10.2AP Ch. 10 - Prob. 10.3AP Ch. 10 - Prob. 10.4AP Ch. 10 - Prob. 10.5AP Ch. 10 - Prob. 10.6AP Ch. 10 - Prob. 10.7AP Ch. 10 - Prob. 10.8AP Ch. 10 - Prob. 10.9AP Ch. 10 - Prob. 10.10AP Ch. 10 - Prob. 10.11AP Ch. 10 - Prob. 10.12AP Ch. 10 - Prob. 10.13AP Ch. 10 - Prob. 10.1CACR Ch. 10 - Prob. 10.1EYCT Ch. 10 - Prob. 10.2EYCT Ch. 10 - Prob. 10.3EYCT Ch. 10 - Prob. 10.4EYCT Ch. 10 - Prob. 10.5EYCT Ch. 10 - DECISION-MAKING ACROSS THE ORGANIZATION On January...Ch. 10 - Prob. 10.9EYCT Ch. 10 - Prob. 10.10EYCT Ch. 10 - Prob. 10.14EYCT Ch. 10 - Prob. 10.1IFRSE Ch. 10 - Prob. 10.2IFRSE Ch. 10 - Prob. 10.3IFRSE Ch. 10 - Prob. 10.4IFRSE

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