The adjusting entry to record a contingent liability requires a debit to a loss (or expense) account and credit to a liability. TRUE OR FALSE?
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- Which of the following is an accurate description of the allowance for doubtful accounts? liability account expense account contra account revenue accountstate the differences between unearned revenue and accounts payable? both accounts are liabilities therefore what is the normal balance of liability and does it matter?Why is Accounts Payable classified as a current liability?
- Describe the accounting treatment of anticipated uncollectible accountsreceivable.The practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.What is meant by contingent Liability? How is it shown in final accounts?
- When 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. When the contingent liability is probable and a reasonable estimation can be made of the amount owedWhich of the following statements is false?Select one:a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will occur.b. A contingent liability should be accrued if the loss is probable and the amount of the loss can be reasonably estimated.c. A contingent liability is a potential obligation that depends on the future outcome of past events.d. All contingent liabilities should be reported as liabilities on the financial statements, even those that are unlikely to occur.Allowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset account d. Liability account
- Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C. Deferred revenue. D. An unused line of credit.Which of the following is usually not an accrued liability? Select one: a. Notes payable b. Taxes payable C. The answer does not exist d. Wages payable e. Interest payable Jump to...How is a correction of an accounting error made?