Describe the term contingency and also identify the exact reason for company being uncertain about.

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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 9, Problem 21GI

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Describe the term contingency and also identify the exact reason for company being uncertain about.

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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 9, Problem 21GI

To determine

Describe the term contingency and also identify the exact reason for company being uncertain about.

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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 9, Problem 21GI

To determine

Describe the term contingency and also identify the exact reason for company being uncertain about.

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Answer 4

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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 9, Problem 21GI

To determine

Describe the term contingency and also identify the exact reason for company being uncertain about.

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Answer 5

Chapter 9, Problem 21GI

To determine

Describe the term contingency and also identify the exact reason for company being uncertain about.

Answer 6

Chapter 9, Problem 21GI

To determine

Describe the term contingency and also identify the exact reason for company being uncertain about.

Answer 7

Chapter 9, Problem 21GI

To determine

Describe the term contingency and also identify the exact reason for company being uncertain about.

Answer 8

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Answer 9

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Answer 11

Ch. 9 - Prob. 1GI Ch. 9 - Prob. 2GI Ch. 9 - List the three characteristics of a liability....Ch. 9 - Prob. 4GI Ch. 9 - Prob. 5GI Ch. 9 - Prob. 6GI Ch. 9 - Prob. 7GI Ch. 9 - Prob. 8GI Ch. 9 - How does materiality affect the accounting for...Ch. 9 - Distinguish between an interest-bearing note and a...

Describe the term contingency and also identify the exact reason for company being uncertain about.

Solution Summary: The author explains the term contingency and the exact reason for company being uncertain about it. Contingent liability is an uncertain obligation that might be incurred on a future date.

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Describe the term contingency and also identify the exact reason for company being uncertain about.

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