Contingent Lability: Contingent liability is a possible liability it depends on the future events which are likely to occur or not occur. Contingent liability is recorded in accounting records and the amount can be fairly determined. To Explain: the treatment for 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 3CMA

To determine

Contingent Lability:

Contingent liability is a possible liability it depends on the future events which are likely to occur or not occur. Contingent liability is recorded in accounting records and the amount can be fairly determined.

To Explain: the treatment for 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 3CMA

To determine

Contingent Lability:

Contingent liability is a possible liability it depends on the future events which are likely to occur or not occur. Contingent liability is recorded in accounting records and the amount can be fairly determined.

To Explain: the treatment for the given situation.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

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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 3CMA

To determine

Contingent Lability:

Contingent liability is a possible liability it depends on the future events which are likely to occur or not occur. Contingent liability is recorded in accounting records and the amount can be fairly determined.

To Explain: the treatment for the given situation.

Expert Solution & Answer

Want to see the full answer?

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 3CMA

To determine