Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen. Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements. Requirement 1: To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

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Answer 1

Question

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

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Please explain the correct approach for solving this general accounting question.

2. What does the accounting equation represent? A) Revenue = Expenses + ProfitB) Assets = Liabilities + EquityC) Liabilities = Equity - AssetsD) Revenue = Assets - Liabilities

Please accounting solution and correct answer

Answer 2

Question

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

Answer 6

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

Answer 7

Chapter 11, Problem 11.2DC

To determine

Contingent Liabilities are liabilities which arise from past events and it shall materialize its existence on occurrence or non-occurrence of a future event which may or may not happen.

Sell-Soft is the defendant in numerous law-suits claiming unfair trade practices. It has strong incentives not to disclose these contingent liabilities. GAAP requires the company to report the same. It is necessary for a company to follow the accounting principles laid down in the GAAP. Sell-Soft should hence disclose the same in their statements.

Requirement 1:

To discuss: the reasons of why a company would refrain from disclosing the contingent liabilities in the books of accounts

Answer 8

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

Answer 9

To determine

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

Answer 10

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

Answer 11

To determine

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - McDaniel and Associates reported the following...

Concept explainers

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

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Chapter 11 Solutions

Concept explainers

Requirement 2: To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

Requirement 3: the ethical tightrope while reporting contingent liabilities and the reporting responsibilities

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Chapter 11 Solutions

Requirement 2:

To discuss: the harm caused to bank in the event of a company not disclosing its contingent liabilities

Requirement 3:

the ethical tightrope while reporting contingent liabilities and the reporting responsibilities