Contingent liability : The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. To explain: To explain with examples the estimates that are used in accounting that are not contingencies.

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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 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

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During July, the production department of PrimeTech Manufacturing completed a number of units of a product and transferred them to finished goods. Of these transferred units, 45,000 were in process in the production department at the beginning of July, and 185,000 were started and completed in July. July's beginning inventory units were 35% complete with respect to materials and 55% complete with respect to labor. Compute the number of units transferred to finished goods.

Subject general accounting question

Please explain the solution to this general accounting problem using the correct accounting principles.

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 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

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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 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

Expert Solution & Answer

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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 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

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Answer 5

Chapter 13, Problem 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

Answer 6

Chapter 13, Problem 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

Answer 7

Chapter 13, Problem 3CE

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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

Answer 8

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Answer 9

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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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. To explain: To explain with examples the estimates that are used in accounting that are not contingencies.

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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 explain: To explain with examples the estimates that are used in accounting that are not contingencies.