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 explain : Contingent liability and its examples

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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 11, Problem 13RQ

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 explain: Contingent liability and its examples

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What is the direct materials quantity variance on these general accounting question?

Cullumber Company uses a job-order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department D, direct labour hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2022, the following estimates were made for the year. Department D E K Manufacturing overhead $1,280,000 $1,500,000 $840,000 Direct labour costs $1,600,000 $1,312,500 $472,500 Direct labour hours 105,000 125,000 42,000 Machine hours 420,000 525,000 120,000 The following information pertains to January 2022 for each manufacturing department. Department D E K Direct materials used Direct labour costs $147,000 $132,300 $81,900 $126,000 $115,500 $39,375 Manufacturing overhead incurred $103,950 $128,600 $73,950 Direct labour hours 8,400 11,550 3,675 Machine hours 35,700 47,250 10,380 Your answer is partially correct. Calculate the predetermined overhead rate for each department.…

General Accounting Question

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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 11, Problem 13RQ

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 explain: Contingent liability and its examples

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

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 11, Problem 13RQ

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 explain: Contingent liability and its examples

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

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 11, Problem 13RQ

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 explain: Contingent liability and its examples

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 11, Problem 13RQ

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 explain: Contingent liability and its examples

Answer 6

Chapter 11, Problem 13RQ

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 explain: Contingent liability and its examples

Answer 7

Chapter 11, Problem 13RQ

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 explain: Contingent liability and its examples

Answer 8

Expert Solution & Answer

Answer 9

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Answer 10

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Answer 11

Ch. 11 - Prob. 6QC Ch. 11 - Prob. 1QC Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

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 explain : Contingent liability and its examples

Solution Summary: The author explains that contingent liability is a liability that depends on an uncertain event and loss.

Concept explainers

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 explain: Contingent liability and its examples

Want to see the full answer?

Chapter 11 Solutions

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 explain : Contingent liability and its examples

Solution Summary: The author explains that contingent liability is a liability that depends on an uncertain event and loss.

Concept explainers

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 explain: Contingent liability and its examples

Want to see the full answer?

Chapter 11 Solutions

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 explain: Contingent liability and its examples