Question 7 What are the three (3) categories of assessing potential losses related to contingent liabilities?...

Question 7

What are the three (3) categories of assessing potential losses related to contingent liabilities?

I.	Material, immaterial, clearly trivial.
II.	Litigation, claims and assessments.
III.	Probable, remote and reasonably possible.
IV.	Certain, probable and possible.

Question 8

Auditors need to take special care to review significant judgmental estimates included in the financial statements because they are subject to management bias and fraud. Ultimately the auditor is responsible of providing reasonable assurance that the estimates are:

A.	Reasonable, presented in accordance with GAAP, and adequately disclosed.
B.	Necessary, comparative with prior periods and presented in accordance with GAAP.
C.	Adequately disclosed and supportable.
D.	Presented in accordance with GAAP.

Solutions

Expert Solution

ekkarill92 answered 11 months ago

Next > < Previous

Related Solutions

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?

a) List the three categories of contingent liabilities and what the company must disclose or record...

a) List the three categories of contingent liabilities and what the company must disclose or record for each category.

a) List the three categories of contingent liabilities. Also, what does the company have to disclose...

a) List the three categories of contingent liabilities. Also, what does the company have to disclose or record for each category? b) When issuing bonds, if the market interest rate is greater than the stated interest rate, will the bonds issue at a premium or a discount and why? Explain your reasoning for your answer.

Western Manufacturing is involved with several potential contingent liabilities

Western Manufacturing is involved with several potential contingent liabilities. Your assignment is to draft the appropriate accounting treatment for each situation described below. Western’s fiscal year-end is December 31, 2021, and the financial statements will be issued in early February 2022. a. During 2021, Western experienced labor disputes at three of its plants. Management hopes an agreement will soon be reached. However, negotiations between the company and the unions have not produced an acceptable settlement, and employee strikes are currently...

Three GAAP-specified categories of contingent liabilities exist: probable, possible and remote. In general probable contingencies are...

Three GAAP-specified categories of contingent liabilities exist: probable, possible and remote. In general probable contingencies are more than likely to occur and can be reasonably appraised. Possible contingencies are less than likely of being realized, nevertheless they are not necessarily considered unlikely as well. Remote contingencies are not likely to occur. Respond to the following in a minimum of 175 words: Discuss the two main distinctions between assets on the balance sheet. Discuss reporting requirements for contingencies. Explain two examples...

2. What are the three ways of dealing with (accounting for) contingent liabilities

You are an expert who deals with the transactions related to provisions, contingent assets, contingent liabilities...

You are an expert who deals with the transactions related to provisions, contingent assets, contingent liabilities and intangible assets. For each of the scenario mentioned below provide with: appropriate solution with accounting treatment, calculations and necessary comments: (4 x 2.5 inarks each - 10 marks) 1. ABC SAOG has a written policy to meet proven environmental claims without going to court. The company already have a liability for environmental damage from a court case that is still in progress at...

With respect to contingent liabilities, there are three different likelihood's of the liabilities occurring, of those...

With respect to contingent liabilities, there are three different likelihood's of the liabilities occurring, of those three which one does not required any kind of journal entry or notes to the financial statements?

What are the audit procedures for identifying contingent liabilities?

Western Manufacturing is involved with several potential contingent liabilities. Your assignment is to draft the appropriate...

Western Manufacturing is involved with several potential contingent liabilities. Your assignment is to draft the appropriate accounting treatment for each situation described below. Western's fiscal year-end is December 31, 2018, and the financial statements will be issued in early February 2019. a. During 2018, Western experienced labor disputes at three of its plants. Management hopes an agreement will soon be reached. However, negotiations between the company and the unions have not produced an acceptable settlement, and employee strikes are currently...

Subjects