WebA contingent liability is: This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. See Answer Question: A contingent liability is: Show transcribed image text Expert Answer 100% (4 ratings) >> A contingent Liability means a potential lia … View the full answer WebQuestion: When is a contingent liability recorded? Select one: a. When there is a remote possibility that the future related event will occur and the amount can be reasonably estimated b. When the amount can be reasonably estimated c. When the related future event will probably occur and the amount can be reasonably estimated d.
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WebWhen should a contingent liability be recognized and reported on the financial statements? A. Reporting contingent liabilities do not require they be probable or reasonably estimated B. When the contingent liability is probable C. When a reasonable estimation can be made of the amount owed D. WebHow about a $5 million pending lawsuit for defective parts? Please discuss ethical issues here as well. Please see Contingent Liabilities page 474-476. What are they? Why should a company disclose a contingent liability? Would you invest in a company that has a $1000 tax liability with the IRS? How about a $5 million pending lawsuit for ... mchardy\u0027s chicken and fixin
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WebQuestion: QUESTION 15 How should a contingent liability that is reasonably possible but cannot reasonably be estimated be reported within the financial statements? It must only be disclosed as a note to the financial statements. It does not need to be recorded or reported as a liability. It must be recorded and reported as a liability. Web1. What is an example of a contingent liability? a. Unresolved lawsuits b. Payroll taxes C. Employee wages d. Notes payable 2. A contingent liability a. occurs when the timing of a liability is certain. b. depends on current events. c. occurs when the amount of a liability is uncertain. d. can be recognized in the liability account at any time. WebQuestion: For each of the following scenarios, indicate whether a liability is probably, possible, or remote, whether it is estimable or not estimable, and whether the company should acerue a contingent liability, disciose only, or do nothing. Missus Chen's Bakery is being sued by Mrs. Chen's Bakery for Trademark infringement. m charizard ex 13/108