Known Liabilities: The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not. When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement. Requirement: TheTreatment of Known liabilities which can be estimated in the books.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Answer? ? Accounting question

Help

Need correct answer general accounting question

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Answer 6

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Answer 7

Chapter 11, Problem 1QC

To determine

Known Liabilities:

The Known Liabilities are those liabilities which has not been recorded in the book yet. However, these are foreseeing to occur in the near future. In such situations, it is to be taken care of whether the amount of such liabilities can be determined accurately or not.

When the amount can be determined with accuracy, then such liabilities shall be recorded as actual liability.When such liabilities are expected to arisebut the estimated amount cannot be determined with accuracy, then such liability shall be shown as a note to the financial statement.

Requirement:

TheTreatment of Known liabilities which can be estimated in the books.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Solution: Theestimated amount of known liabilitiesare reported on the balance sheet.

b. reported in the Balance sheet.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The liabilities which are going to arise in the near future and the amount of which is going to be determined with accuracy shall be reported in the liabilities of the balance sheet.

For example, the workman compensation claim pending for dispute in the court and it is apparent from the proceedings that the compensation of $200,000 have to be borne by the firm, then while preparing the financial statement, the claim for workmen compensation shall be reported in the liabilities side of the balance sheet.

Answer 12

Conclusion

To conclude, it must be said that known liabilities arising in the near future and estimated amount ascertained shall be reported in the balance sheet as liabilities.

Answer 13

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...

Videos

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions