Contingent liability : The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. To determine whether to record a liability or not in the given situation.

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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 28Q

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.

To determine whether to record a liability or not in the given situation.

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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 28Q

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.

To determine whether to record a liability or not in the given situation.

Expert Solution & Answer

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Check out a sample textbook solution

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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 28Q

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.

To determine whether to record a liability or not in the given situation.

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 28Q

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.

To determine whether to record a liability or not in the given situation.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 28Q

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.

To determine whether to record a liability or not in the given situation.

Answer 6

Chapter 13, Problem 28Q

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.

To determine whether to record a liability or not in the given situation.

Answer 7

Chapter 13, Problem 28Q

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.

To determine whether to record a liability or not in the given situation.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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. To determine whether to record a liability or not in the given situation.

Concept explainers

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

To determine whether to record a liability or not in the given situation.

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. To determine whether to record a liability or not in the given situation.

Concept explainers

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. To determine whether to record a liability or not in the given situation.

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.

To determine whether to record a liability or not in the given situation.