Chapter 8, Problem 16RQ

To determine

Loss contingency:

Loss contingency is a contingency where existing situation or circumstances where potential losses are resolved and thus, future events are occurred.  Examples for loss contingency are as follows:

1. 1. Possible repair to a product under any warranty
2. 2. Defendant in a lawsuit
3. 3. Uncollectible receivables

To List: the three categories of likelihood that payment for contingent liability will need to be made.

To determine

Loss contingency:

Loss contingency is a contingency where existing situation or circumstances where potential losses are resolved and thus, future events are occurred.  Examples for loss contingency are as follows:

1. 1. Possible repair to a product under any warranty
2. 2. Defendant in a lawsuit
3. 3. Uncollectible receivables

To Describe: briefly the three categories of likelihood that a payment for a contingent liability will need to be made.