Contingent liabilities are obligations that may or may not materialize
Q: Briefly explain off-balance-sheet assets and off-balance-sheet liabilities with an appropriate…
A: Off-balance-sheet items seem to be those items that do not show up on a company's balance sheet.…
Q: A present obligation that is probable and for which the amount can be reliably estimated should…
A: The estimated expenses are the expenses which can be valued on the basis of past experiences or…
Q: How is present value related to the concept of a liability?
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: What are Contingent Liabilities? Give an example. What are the factors that determine the reason…
A: A liability, the occurrence of which is uncertain that is it may or may not occur is known as a…
Q: Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they…
A: A warranty liability is a liability account that reports the estimated amount that a company will…
Q: What is the debt with a subjective acceleration clause in the exposure draft, Topic 470?
A: The is based on the concept of accounting of debt and accounting treatment of debt in books of…
Q: How are contingent liabilities accounting for? a) In your own word, what is a contingent liability?…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: According to IAS 1, what are the classification of liabilities? O Current, noncurrent, estimated and…
A: Answer - According to IAS 1 - Liabilities are basically classified as Current and Non Current…
Q: For most long-term liabilities, an important consideration is that they are properly authorized.…
A: The long term liability is reported as a long term because they covers many years and the majority…
Q: what conditions are not necessary to exclude a short term obligation from current liabilities?
A: Current liabilities: It refers to short term financial obligations that are to be discharged within…
Q: When should a contingent liability be recognized and reported on the financial statements? A.…
A: Contingent liability: A liability can occur on future uncertain events.
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events refers to the happening of event through accident or chance. In short, it is a…
Q: Which of the following is not a condition necessary to exclude a short-term obligation from current…
A: SHORT-TEAM OBLIGATIONS: Debt, also called current liabilities, is a firm's financial obligations…
Q: contingent liabilities? Which two conditions have to be met in der to report a contingent liability…
A: The foundation for determining investor returns and analyzing a company's financial structure is the…
Q: What are contingent liabilities?
A: Liabilities by and large, are a commitment to, or it is an amount that one owes to another person.…
Q: Under what conditions should a short-term obligation beexcluded from current liabilities?
A: Current liabilities: The debt obligations owed by a company to creditors and suppliers and are to be…
Q: How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?
A:
Q: Debt guarantees are not usually disclosed as a contingent llablity. O True False
A: Solution- Debt guarantee are not balance sheet items. They are shown as a contingent liability and…
Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…
A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…
Q: Which of the following statements is true concerning contingent liabilities? a. Such liabilities…
A: A contingent liability is a liability that may occur depending on the outcome of an uncertain future…
Q: An obligation that is contingent on the occurrence of a future event should be reported in the…
A: Financial statements: The financial statements refer to the combination of a various statements like…
Q: Bonds Payable is a type of current liabilities. True False
A: Bonds payable is a liability for the business, it means amount of bonds that the company has to…
Q: What amount should be reported as total noncurrent liabilities?
A: Answer: 1,620,00
Q: Liabilities are
A: Balance sheet includes the assets, liabilities and stockholders' equity of the company that…
Q: the stakeholders position is not protected by a contract -unlike the provider of debt- how is it in…
A: Shareholders are the individuals who get ownership of the organization when they invest in their…
Q: When the debtor binds himself to pay when his means permit him to do so, the obligation is:
A: When the debtor binds himself to pay when his means permit him to do so, the obligation is: Answer -…
Q: Contingent liabilities are not recorded in the financial statements. True False
A: As per IAS 37, Provisions, contingent assets and contingent liabilities A contingent liability is a…
Q: 1. Which of the following is not an essential characteristic of a liability? * a. It is a present…
A: Liabilities may he defined as existing obligations which a business enterprise intends to meet in…
Q: What are the audit procedures used to identify contingent liabilities?
A:
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events are the events that are considered as the "act of God" because naturally, the act…
Q: Are monetary obligations under a contract of surety intransmissible by their nature, by stipulation,…
A: Contract of surety relates to the contract of guarantee a contract is to perform the promise or…
Q: Which of the following liabilities would be considered nonrecourse?
A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…
Q: Which of the following statements is false? Select one: a. A contingent liability should be…
A: A contingent liability is a liability which may occur in the future due to some circumstances not…
Q: Which of the following is not a ground for the extinguishment of an obligation? O Condonation or…
A: Following is the correct answer
Q: Liabilities are present obligation which represent O legal only O expected value O neither legal or…
A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…
Q: What is the relationship between provisions, onerous contracts, contingent liabilities and other…
A: The book in which the company records all its transactions initially is termed as journal book. From…
Q: Define what is an off-balance sheet activity? Also provide example of an off-balance sheet an…
A: Off-Balance sheet Activity means the assets or liabilities which are not reflected in the balance…
Q: Contingent liabilities must be recorded if: O The future event is probable and the amount owed can…
A: Contingent liability is the liability that occurs which depends on the future event that may or may…
Q: True (t) or False (f) _____ Contingent liabilities should be recorded in the accounts if there is a…
A: The contingent liability represents the obligation that arise in the organization due to its past…
Q: The following obligations are immediately demandable, EXCEPT: a pure obligation obligation with…
A: There are obligation to be paid immediately but there are some conditional liabilities they occur…
Q: Suppose the analysis of a loss contingency indicates that an obligation is not probable. What…
A: Contingent Liability Contingent liability is one form of liability that arises based on a…
Q: Contingent liabilities that are probable and can be estimated are...
A: A contingent liability is an unforeseen obligation i.e. it has a potential risk that may occur in…
Q: A credit derivative allows creditors and debtors to _________ their exposure to credit risk. For…
A: A credit derivative is a financial contract that allows the parties to minimize their exposure to…
Q: Explain Contingent Liabilities.
A: Contingent liabilities are the liabilities of the company but they can not be classified as current…
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- How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?What are Contingent Liabilities? Give an example. What are the factors that determine the reason for Contingent Liabilities?What is the relationship between provisions, onerouscontracts, contingent liabilities and other types ofliabilities?