A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 17Q: Sometimes financial statements contain errors. What type of liabilities may need correction as a...
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A basic difference between loss contingencies and “real”
liabilities is:
a. Liabilities stem from past transactions; loss contingen-
cies stem from future events.
b. Liabilities always are recorded in the accounting
records, whereas loss contingencies never are.
c. The extent of uncertainty involved.
d. Liabilities can be large in amount, whereas loss contin-
gencies are immaterial.
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