1) Introduction: Contingent expenses and contingent liabilities • These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events. • An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period. • Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements. To Determine: Warranty expenses recorded by Samsung in 2015.

Question

Want to see the full answer?

Answer 1

Question

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 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

hi expert please help me financial accounting

need help this questions

Selected comparative financial statements of Korbin Company follow. Sales KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 512,008 $ 392,240 2019 $ 272,200 Cost of goods sold 308,229 245,542 174,208 Gross profit 203,779 146,698 97,992 Selling expenses 72,705 54,129 35,930 Administrative expenses 46,081 34,517 22,593 Total expenses 118,786 88,646 58,523 Income before taxes .84,993 58,052 39,469 Income tax expense 15,809 11,901 8,012 Net income $ 69,184 $ 46,151 $ 31,457 KORBIN COMPANY Comparative Balance Sheets Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings December 31 2021 2020 2019 $ 54,370 0 $ 36,390 600 $ 48,645 3,870 99,436 90,776 53,339 Total liabilities and equity $ 153,806 $ 127,766 $ 105,854 $ 22,456 $ 19,037 $ 18,524 68,000 68,000 50,000 8,500 8,500 5,556 54,850 32,229 31,774 $ 153,806 $ 127,766 $ 105,854

Answer 2

Question

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 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

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 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Answer 6

Chapter 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

Answer 7

Chapter 18, Problem 9BTN

To determine

1)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Samsung in 2015.

Answer 8

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

Answer 9

To determine

2)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Warranty expenses recorded by Apple in 2015.

Answer 10

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Answer 11

To determine

3)

Introduction:

Contingent expenses and contingent liabilities

• These are expenses and liabilities that are conditional in nature and their future occurrence is conditional on the happening or not happening of certain events.

• An example of this category of expense and liability are warranties. Warranty expenses and warranty liability refer to the costs of repairing defect products that have been sold and are in the warranty period.

• Every sold finished good comes with a warranty. A warranty can be invoked when the product is defective and there is no fault of the consumer. Warranty costs are recorded as estimates based on studies and past trends in the financial statements.

To Determine:

Which company is more accurate in the estimation of warranty claims among Apple and Samsung

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

Want to see the full answer?

Chapter 18 Solutions