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Business Accounting HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT

Contingent liability : It is a potential liability of a company that depends on a future event. The recording of contingent liability is based on the following likelihoods of the event occur in future: Remote Reasonably possible Probable To explain : Contingent liability and its examples

Contingent liability : It is a potential liability of a company that depends on a future event. The recording of contingent liability is based on the following likelihoods of the event occur in future: Remote Reasonably possible Probable To explain : Contingent liability and its examples

Solution Summary: The author explains that contingent liability is a liability that depends on an uncertain event and loss.

HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT

HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT

7th Edition

ISBN: 9780136505273

Author: MILLER-NOBLES

Publisher: PEARSON

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the conting…

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 11, Problem 13RQ

To determine

Contingent liability: It is a potential liability of a company that depends on a future event. The recording of contingent liability is based on the following likelihoods of the event occur in future:

Remote

Reasonably possible

Probable

To explain: Contingent liability and its examples

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Chapter 11, Problem 12RQ

Chapter 11, Problem 14RQ

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Chapter 11 Solutions

HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT

Ch. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC Ch. 11 - Prob. 1RQ

Ch. 11 - What is a current liability? Provide some examples...Ch. 11 - How is sales tax recorded? Is it considered an...Ch. 11 - How do unearned revenues arise?Ch. 11 - What do short-term notes payable represent?Ch. 11 - Coltrane Company has a 5,000 note payable that is...Ch. 11 - Prob. 7RQ Ch. 11 - Prob. 8RQ Ch. 11 - Prob. 9RQ Ch. 11 - Prob. 10RQ Ch. 11 - What are the two main controls for payroll?...Ch. 11 - When do businesses record warranty expense, and...Ch. 11 - Prob. 13RQ Ch. 11 - Prob. 14RQ Ch. 11 - Prob. 15RQ

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