What is a contingent liability? What conditions require that a contingent liability be recognized as a...

What is a contingent liability? What conditions require that a contingent liability be recognized as a liability in the books?

Solutions

Expert Solution

what is contingent liability

answer :contingent liability is a liability that may or may not occur in the future and it is depending upon the outcome of the specific event. examples of contingent liabilities are potential lawsuits , product warranties

conditions for recording contingent liability be recognized as a liability in the books

1) contingent liability is probable and the future event will occur

2)contingent liability is reasonably estimated

these both conditions are required for recording contingent liability as real liability

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

How can a contingent liability be recognized in a liability and how is it related to...

How can a contingent liability be recognized in a liability and how is it related to accounting theory?

What is a contingent liability? Give an example of a contingent liability that is usually recorded...

What is a contingent liability? Give an example of a contingent liability that is usually recorded in the accounts in current period even though it is Still a Contingent liability now (Not a liability). Under what circumstances is a contingent liability disclosed only in the notes to the financial statements? Under what circumstances is a contingent liability not recorded in the accounts nor disclosed in the notes to the financial statements?

What is a contingent liability? List the three categories of contingent liabilities. Our contingent liabilities recorded...

What is a contingent liability? List the three categories of contingent liabilities. Our contingent liabilities recorded on a company’s books? Explain. What is the difference in accounting procedures for liability that is probable an estimate a book and one that is reasonably possible but not us to Mobil?

What is a contingent liability? min 200 words

Please discuss the accrued liability with at least two examples. What is a contingent liability? What...

Please discuss the accrued liability with at least two examples. What is a contingent liability? What happens to your balance sheet and income statements when you failed (intentionally or unintentionally) to recognize liability at year end? Please discuss bond discount, premium and par issues. When do they issue bonds with discount? with premium? How are discount or premium amortized over the life over the bonds? How the amortization (discount or premium) affect the interest expenses? Please briefly discuss the concept...

What is the criteria for determining if a contingent liability needs to be reported on the...

What is the criteria for determining if a contingent liability needs to be reported on the financial statements? How is the value of a contingent liability determined?

‘A provision and a contingent liability are the same.’ Discuss.

What are the requirements for determining the financial reporting of a contingent liability? Why would a...

What are the requirements for determining the financial reporting of a contingent liability? Why would a company want to keep its contingent liability as low as possible? How could a company manipulate contingent liability to its advantage?

what is a contingent liability and how would you determine the amount to record for a...

what is a contingent liability and how would you determine the amount to record for a contingent liability?

1. Define contingent liabilities and describe the types of events that might create a contingent liability....

1. Define contingent liabilities and describe the types of events that might create a contingent liability. Describe places auditors might look for contingent liabilities. 2. Explain how auditors treat events that occur after the end of the fiscal year being audited but before the audit opinion has been issued. Describe steps auditors use to identify those events.

Subjects