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Business Accounting INTERMEDIATE ACCOUNTING

Contingent Liability Contingent liability is one form of liability that arises based on a particular outcome of a specific event. They are possible obligation that might arise or might not arise based on the future events. It is otherwise called as probable liability or eventual liability. Following are examples of contingencies: Income tax disputes Discounted notes receivable Lawsuits Debt guarantees Failure to follow government regulations To report: Contingent loss (liability)

Contingent Liability Contingent liability is one form of liability that arises based on a particular outcome of a specific event. They are possible obligation that might arise or might not arise based on the future events. It is otherwise called as probable liability or eventual liability. Following are examples of contingencies: Income tax disputes Discounted notes receivable Lawsuits Debt guarantees Failure to follow government regulations To report: Contingent loss (liability)

Solution Summary: The author explains Contingent Liability, which arises based on a particular outcome of an event. It is otherwise called as probable liability or eventual liability.

INTERMEDIATE ACCOUNTING

INTERMEDIATE ACCOUNTING

10th Edition

ISBN: 9781264559527

Author: SPICELAND

Publisher: MCG

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the conting…

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 13, Problem 13.13BE

To determine

Contingent Liability

Contingent liability is one form of liability that arises based on a particular outcome of a specific event. They are possible obligation that might arise or might not arise based on the future events. It is otherwise called as probable liability or eventual liability. Following are examples of contingencies:
Income tax disputes
Discounted notes receivable
Lawsuits
Debt guarantees
Failure to follow government regulations

To report: Contingent loss (liability)

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Chapter 13, Problem 13.12BE

Chapter 13, Problem 13.14BE

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Chapter 13 Solutions

INTERMEDIATE ACCOUNTING

Ch. 13 - What are the essential characteristics of...Ch. 13 - Prob. 13.2Q Ch. 13 - Bronson Distributors owes a supplier 100,000 on...Ch. 13 - Bank loans often are arranged under existing lines...Ch. 13 - Prob. 13.5Q Ch. 13 - Prob. 13.6Q Ch. 13 - Salaries of 5,000 have been earned by employees by...Ch. 13 - Prob. 13.8Q Ch. 13 - Prob. 13.9Q Ch. 13 - Prob. 13.10Q

Ch. 13 - Prob. 13.11Q Ch. 13 - Prob. 13.12Q Ch. 13 - Long-term obligations usually are reclassified and...Ch. 13 - How do IFRS and U.S. GAAP differ with respect to...Ch. 13 - Prob. 13.15Q Ch. 13 - Prob. 13.16Q Ch. 13 - Prob. 13.17Q Ch. 13 - Prob. 13.18Q Ch. 13 - Suppose the analysis of a loss contingency...Ch. 13 - Prob. 13.20Q Ch. 13 - Distinguish between the accounting treatment of a...Ch. 13 - At December 31, the end of the reporting period,...Ch. 13 - After the end of the reporting period, a...Ch. 13 - Prob. 13.24Q Ch. 13 - Prob. 13.25Q Ch. 13 - Prob. 13.26Q Ch. 13 - Prob. 13.27Q Ch. 13 - Prob. 13.28Q Ch. 13 - Bank loan; accrued interest LO132 On October 1,...Ch. 13 - Non-interest-bearing note; accrued interest LO132...Ch. 13 - Determining accrued interest LO132 On July1,...Ch. 13 - Commercial paper LO132 Branch Corporation issued...Ch. 13 - Non-interest-bearing note; effective interest rate...Ch. 13 - Sales tax LO133 DuringDecember, Rainey Equipment...Ch. 13 - Prob. 13.12BE Ch. 13 - Prob. 13.13BE Ch. 13 - Contingency LO135, LO136 Skill Hardware is the...Ch. 13 - Contingency LO135, LO136 Bell International can...Ch. 13 - Prob. 13.16BE Ch. 13 - Prob. 13.17BE Ch. 13 - FASB codification research LO133, LO134, LO135...Ch. 13 - Current noncurrent classification of debt; Sprint...Ch. 13 - Prob. 13.12E Ch. 13 - Prob. 13.14E Ch. 13 - Extended warranties LO135, LO136 Carnes...Ch. 13 - Disclosures of liabilities Indicate (by letter)...Ch. 13 - Prob. 13.11P Ch. 13 - Prob. 13.2DMP Ch. 13 - Prob. 13.3DMP Ch. 13 - Prob. 13.4DMP Ch. 13 - Prob. 13.18DMP Ch. 13 - Real World Case 1319 Contingencies LO135 Real...Ch. 13 - Prob. 1CCTC Ch. 13 - Prob. 2CCTC

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