Contingent liabilities must be recorded if: O The future event is probable and the amount owed can be reasonably estimated O The future event is remote
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- Contingent liabilities that are probable and can be estimated are...An obligation that is contingent on the occurrence of a future event should be reported in the statement of financial position as a liability if: a. The amount of the obligation can be reasonably estimated. b. The future event is likely to occur. c. The occurrence of the future event is at least reasonably possible and the amount is known d. The occurrence of the future event is probable and the amount can be reasonably estimated.How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?
- Which of the following statements is true concerning contingent liabilities? a. Such liabilities should include obligations of known existence but of unknown amount. b. If the definite amount is involved, it is not a contingent liability. c. Such liabilities are generally reported and totaled with other liabilities to make up the liability section of most balance sheets. d. Such liabilities should include obligations known in amount but unknown in existence.Potential liabilities that depend on future events arising out of past events are calleda. contingent liabilities.b. estimated liabilities.c. current liabilities.d. long-term liabilities.Can you please describe contingent liabilities and how to account for and/or report them.
- Describe the terms of Contingent Liabilities with examples.Contingent liabilities are obligations that may or may not materialize.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 owed
