Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (11th Edition)

11th Edition

ISBN: 9780134417363

Author: Walter T. Harrison Jr., Charles T. Horngren, C. William Thomas, Wendy M. Tietz

Publisher: PEARSON

See similar textbooks

Videos

Textbook Question

Chapter 9, Problem 5QC

A contingent liability should be recorded in the accounts

a. if the amount can be reasonably estimated.

b. if the amount is due in cash within one year.

c. if the related future event will probably occur.

d. both b and c

e. both a and c

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9, Problem 4QC

Chapter 9, Problem 6QC

Students have asked these similar questions

No AI ANSWER

Determine the direct labor cost budget for 2015 on these general accounting question?

MCQ

Chapter 9 Solutions

Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (11th Edition)

Ch. 9 - Prob. 1QC Ch. 9 - Prob. 2QC Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - A contingent liability should be recorded in the...Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

Ch. 9 - Prob. 11QC Ch. 9 - Prob. 12QC Ch. 9 - Prob. 13QC Ch. 9 - Prob. 14QC Ch. 9 - Prob. 15QC Ch. 9 - Prob. 16QC Ch. 9 - Prob. 17QC Ch. 9 - Prob. 9.1EC Ch. 9 - Prob. 9.1S Ch. 9 - Prob. 9.2S Ch. 9 - Prob. 9.3S Ch. 9 - Prob. 9.4S Ch. 9 - Prob. 9.5S Ch. 9 - Prob. 9.6S Ch. 9 - Prob. 9.7S Ch. 9 - Prob. 9.8S Ch. 9 - Prob. 9.9S Ch. 9 - Prob. 9.10S Ch. 9 - Prob. 9.11S Ch. 9 - Prob. 9.12S Ch. 9 - Prob. 9.13S Ch. 9 - Prob. 9.14S Ch. 9 - Prob. 9.15S Ch. 9 - Prob. 9.16S Ch. 9 - Prob. 9.17S Ch. 9 - Prob. 9.18S Ch. 9 - Prob. 9.19S Ch. 9 - Prob. 9.20AE Ch. 9 - Prob. 9.21AE Ch. 9 - Prob. 9.22AE Ch. 9 - Prob. 9.23AE Ch. 9 - Prob. 9.24AE Ch. 9 - Prob. 9.25AE Ch. 9 - Prob. 9.26AE Ch. 9 - Prob. 9.27AE Ch. 9 - Prob. 9.28AE Ch. 9 - Prob. 9.29AE Ch. 9 - Prob. 9.30AE Ch. 9 - Prob. 9.31AE Ch. 9 - Prob. 9.32AE Ch. 9 - Prob. 9.33AE Ch. 9 - Prob. 9.34AE Ch. 9 - Prob. 9.35AE Ch. 9 - Prob. 9.36BE Ch. 9 - Prob. 9.37BE Ch. 9 - Prob. 9.38BE Ch. 9 - Prob. 9.39BE Ch. 9 - Prob. 9.40BE Ch. 9 - Prob. 9.41BE Ch. 9 - Prob. 9.42BE Ch. 9 - Prob. 9.43BE Ch. 9 - Prob. 9.44BE Ch. 9 - Prob. 9.45BE Ch. 9 - Prob. 9.46BE Ch. 9 - Prob. 9.47BE Ch. 9 - Prob. 9.48BE Ch. 9 - Prob. 9.49BE Ch. 9 - Prob. 9.50BE Ch. 9 - Prob. 9.51BE Ch. 9 - Prob. 9.52Q Ch. 9 - Prob. 9.53Q Ch. 9 - Prob. 9.54Q Ch. 9 - Prob. 9.55Q Ch. 9 - Prob. 9.56Q Ch. 9 - Prob. 9.57Q Ch. 9 - Prob. 9.58Q Ch. 9 - Prob. 9.59Q Ch. 9 - Prob. 9.60Q Ch. 9 - Prob. 9.61Q Ch. 9 - Prob. 9.62Q Ch. 9 - Prob. 9.63Q Ch. 9 - Prob. 9.64Q Ch. 9 - Prob. 9.65Q Ch. 9 - Prob. 9.66Q Ch. 9 - Prob. 9.67Q Ch. 9 - Prob. 9.68Q Ch. 9 - Prob. 9.69Q Ch. 9 - Prob. 9.70Q Ch. 9 - Prob. 9.71AP Ch. 9 - Prob. 9.72AP Ch. 9 - Prob. 9.73AP Ch. 9 - Prob. 9.74AP Ch. 9 - Prob. 9.75AP Ch. 9 - Prob. 9.76AP Ch. 9 - Prob. 9.77AP Ch. 9 - Prob. 9.78AP Ch. 9 - Prob. 9.79AP Ch. 9 - Prob. 9.80BP Ch. 9 - Prob. 9.81BP Ch. 9 - Prob. 9.82BP Ch. 9 - Prob. 9.83BP Ch. 9 - Prob. 9.84BP Ch. 9 - Prob. 9.85BP Ch. 9 - Prob. 9.86BP Ch. 9 - Prob. 9.87BP Ch. 9 - Prob. 9.88BP Ch. 9 - Prob. 9.89CEP Ch. 9 - Prob. 9.90CEP Ch. 9 - (Learning Objective 5: Explore an actual...Ch. 9 - Prob. 2DC Ch. 9 - Prob. 1EI Ch. 9 - Prob. 2EI Ch. 9 - Prob. 1FF Ch. 9 - Prob. 1GP

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

A contingent liability should be recorded in the accounts a. if the amount can be reasonably estimated. b. if the amount is due in cash within one year. c. if the related future event will probably occur. d. both b and c e. both a and c

Solution Summary: The author explains that the correct option related to contingent liability is option (e).

Videos

Want to see the full answer?

Chapter 9 Solutions