Contingent liability : A contingent liability is capable of becoming an actual liability on the occurrence or non-occurrence of an event. A contingent liability is recorded in the books when it is probable or most likely to happen and the amount associated with the liability can be reasonably ascertained, else it is disclosed in the notes to the financial statement. To determine: The reporting of the given situation by the company

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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 14RQ

To determine

Contingent liability:

A contingent liability is capable of becoming an actual liability on the occurrence or non-occurrence of an event. A contingent liability is recorded in the books when it is probable or most likely to happen and the amount associated with the liability can be reasonably ascertained, else it is disclosed in the notes to the financial statement.

To determine:

The reporting of the given situation by the company

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Answer 2

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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 14RQ

To determine

Contingent liability:

A contingent liability is capable of becoming an actual liability on the occurrence or non-occurrence of an event. A contingent liability is recorded in the books when it is probable or most likely to happen and the amount associated with the liability can be reasonably ascertained, else it is disclosed in the notes to the financial statement.

To determine:

The reporting of the given situation by the company

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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 14RQ

To determine

Contingent liability:

A contingent liability is capable of becoming an actual liability on the occurrence or non-occurrence of an event. A contingent liability is recorded in the books when it is probable or most likely to happen and the amount associated with the liability can be reasonably ascertained, else it is disclosed in the notes to the financial statement.

To determine:

The reporting of the given situation by the company

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

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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 14RQ

To determine