Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment. To match: The terms with their definition or most related example.

Question

Want to see the full answer?

Answer 1

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 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

general accounting

QUESTION 2 (a) A property lease includes a requirement that the premises are to be repaintedevery five years and the future cost is estimated at $100,000. The lessee prefers tospread the cost over the five years by charging $$20,000 against profits each year.Thereby creating a provision of $100,000 in five years’ time and affecting profitsequally each year. Requirement:Was it correct for the lessee to provide for this cost? Explain your decision(b) A retail store has a policy of refunding purchases by dissatisfied customers, eventhough it is under no legal obligation. Its policy of making refunds is generallyknown. Requirements:Should a provision be made at year end

Bluesy Electronics recorded the following financial data please answer the financial accounting question

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 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Expert Solution & Answer

Want to see the full answer?

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 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

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 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Answer 6

Chapter 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Answer 7

Chapter 8, Problem 70E

To determine

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment. To match: The terms with their definition or most related example.

Solution Summary: The author explains that contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.

Want to see the full answer?

Chapter 8 Solutions

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment. To match: The terms with their definition or most related example.

Solution Summary: The author explains that contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

Introduction: Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment. To match: The terms with their definition or most related example.

Want to see the full answer?

Chapter 8 Solutions

Introduction:

Contingent liabilities are probable and uncertain in nature. They may or may not convert it into obligation and thus an actual payment.

To match:

The terms with their definition or most related example.