FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Discuss how to report contingent liabilities.

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Contingent Liability

A contingent liability is an obligation that may arise as a result of the outcome of a future event that is unknown.
If the contingency is foreseeable amount of  responsibility can be fairly anticipated,  contingent liability is recorded. Unless all requirements are satisfied, liability may be reported in a footnote of financial statements. 

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