Contingent liability : The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. (a) To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

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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 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

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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 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

Expert Solution & Answer

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Check out a sample textbook solution

See 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 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

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 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 13, Problem 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

Answer 6

Chapter 13, Problem 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

Answer 7

Chapter 13, Problem 5CA

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

Answer 8

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

Answer 9

To determine

(b)

To determine how should the loss estimation be reported in the financial statements.

Answer 10

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

Answer 11

To determine

(c)

To determine how the loss contingency be reported in the financial statements.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

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. (a) To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

Videos

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

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

(b)

To determine how should the loss estimation be reported in the financial statements.

(c)

To determine how the loss contingency be reported in the financial statements.

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. (a) To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

Videos

Contingent liability: The amount of loss liability (which is not sure) should not be recorded till the time the liability is officially declared. (a) To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

(b) To determine how should the loss estimation be reported in the financial statements.

(c) To determine how the loss contingency be reported in the financial statements.

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.

(a)

To determine the conditions that must exist before a loss contingency can be recorded in the accounts.

(b)

To determine how should the loss estimation be reported in the financial statements.

(c)

To determine how the loss contingency be reported in the financial statements.