Contingent liability : A contingent liability takes place as a result of loss contingency. There is a dependency of contingent liability over the future event that either occurs or not. It is recorded in the accounts only when the amount is probable to occur and there is a reasonable estimate of the amount. To determine the way by which the terms probable, reasonably possible and remote are connected to contingent liabilities.

Question

Please help. Mind that i also need the expense for 2025

Answer 1

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 20Q

To determine

Contingent liability: A contingent liability takes place as a result of loss contingency. There is a dependency of contingent liability over the future event that either occurs or not. It is recorded in the accounts only when the amount is probable to occur and there is a reasonable estimate of the amount.

To determine the way by which the terms probable, reasonably possible and remote are connected to contingent liabilities.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Please help. Mind that i also need the expense for 2025

At the beginning of the year, manufacturing overhead for the year was estimated to be $945,600. At the end of the year, actual direct labor hours for the year were 40,000 hours, the actual manufacturing overhead for the year was $910,200, and the manufacturing overhead for the year was overapplied by $50,400. If the predetermined overhead rate is based on direct labor hours, then the estimated direct labor hours at the beginning of the year used in the predetermined overhead rate must have been _. Currect answer

Anderson Technologies has 40,000,000 shares outstanding with a current market PPS of $30.25. If the firm has total assets of $750M, total liabilities of $250M, and net income of $480M, it would have a P/E of _ and a Market-to-Book ratio of _. General Accounting problem 2.4

Answer 2

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 20Q

To determine

Contingent liability: A contingent liability takes place as a result of loss contingency. There is a dependency of contingent liability over the future event that either occurs or not. It is recorded in the accounts only when the amount is probable to occur and there is a reasonable estimate of the amount.

To determine the way by which the terms probable, reasonably possible and remote are connected to contingent liabilities.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

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 20Q

To determine

Contingent liability: A contingent liability takes place as a result of loss contingency. There is a dependency of contingent liability over the future event that either occurs or not. It is recorded in the accounts only when the amount is probable to occur and there is a reasonable estimate of the amount.

To determine the way by which the terms probable, reasonably possible and remote are connected to contingent liabilities.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook 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 20Q

To determine