Chapter 11, Problem 11.1TI

1.

To determine

Contingent liability:  It is a potential liability of a company that depends on a future event. The recording of contingent liability is based on the following likelihoods of the event occur in future:

• Remote
• Reasonably possible
• Probable

To define: Contingent liabilities

2.

To determine

To identify: The reporting of contingencies.

3.

To determine

To explain: The way of handing contingent liabilities if it is reasonably possible but cannot be estimated.

4.

To determine

To Explain: How Incorporated UHG handle the recording of contingent liability related to C Claims Processing Matter.