Contingent liability : The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. (1) To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

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Answer 1

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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 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

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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 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Expert Solution & Answer

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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 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

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 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Expert Solution & Answer

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Answer 5

Chapter 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Answer 6

Chapter 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

Answer 7

Chapter 13, Problem 13E

To determine

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

Answer 8

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

Answer 9

To determine

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

Answer 10

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Answer 11

To determine

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 13 - Prob. 1Q Ch. 13 - Prob. 2Q Ch. 13 - 3. Why is the liabilities section of the balance...Ch. 13 - Prob. 4Q Ch. 13 - Prob. 5Q Ch. 13 - Prob. 6Q Ch. 13 - Prob. 7Q Ch. 13 - Prob. 8Q Ch. 13 - Prob. 9Q Ch. 13 - Prob. 10Q

Contingent liability : The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. (1) To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

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Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Want to see the full answer?

Chapter 13 Solutions

Contingent liability : The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. (1) To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

Videos

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. (1) To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

(2) To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

(3) To explain: To explain how the contingency is reported in the financial statements of E. Inc.

Want to see the full answer?

Chapter 13 Solutions

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared.

(1)

To determine the amount of contingent liability in the financial statements for the year December 31, 2017.

(2)

To determine how AJ Chemical report the given information in its financial statements at December 31, 2017.

(3)

To explain: To explain how the contingency is reported in the financial statements of E. Inc.