How are contingent liabilities accounting for? a) In your own word, what is a contingent liability? b) What is a Remote Contingent Liability and is it recorded? c) What is a Reasonably Possible Contingent Liability and is it recorded? d) What is a Probable Contingent Liability?

Q: What's the difference between IFRS and US GAAP when it comes to the word "contingent liability"?

A: Contingencies - Existing Condition involving uncertainty that may result in possible gain (gain…

Q: What is meant by contingent Liability? How is it shown in final accounts?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: State with reason whether the following statements are true or false Contingent liability is an…

A: Contingent liability can be defined as the liability that may occur on the basis of the outcome of…

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: Distinguish between a determinable current liability anda contingent liability. Give two examples of…

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Q: Which of the following best describes a contingent liability that is unlikely to occur?A. remoteB.…

A: Contingent liabilities are those liabilities that will occur on the basis of future events. These…

Q: Under what conditions should a contingent liability berecorded?

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Q: Which of the options is an example of liability?

A: Liability is something a company  or person owes, usually a sum of money.  It denotes an obligation…

Q: Which of the following is not considered as a characteristic of a liability?

A: The balance sheet comprises two-part, what the company owns (Assets) and what the company owes…

Q: LO4. How are contingent liabilities accounting for? a) In your own word, what is a contingent…

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Q: What is the relationship between present value and the concept of a liability? Present values are…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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 is limited liability?

A: SOLUTION- LIABILITY   IS A FINANCIAL OBLIGATION OF A COMPANY THAT RESULTS IN THE COMPANY'S FUTURE…

Q: Define the term contingent liability.

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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: What is a current liability?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What is a contingent liability?

A: Liabilities are legitimately restricting commitments that are payable to someone else. In accounting…

Q: What is a current liability? Provide some examples of current liabilities.

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Q: A contingent liability whose payment is generally probable

A: Contingent liability is the liability that may or may not happen in the future based on an event.…

Q: What is the amount of the current liability related to this transaction?

A: Invoice raised for the sales made by the company = 4,000 batteries * $150  + 6% sales tax =…

Q: Differentiate between long term liability and short term liability?

A: First of all, let is understand what a liabilty is - Any amount or sum a business or company  is…

Q: What are “liability gains and losses,” and how are theyaccounted for?

A: Liability gains and losses arise from the unexpected increase or decrease in the value of projected…

Q: What's the difference between current liability and long term liability ?

A: Liability: Liability is an obligation of the business to pay to the creditors in future for the…

Q: Explain how does a liability’s fair value change?

A: Fair value is the value of liability which has to be reported in the books of the company’s…

Q: What is a Current Liability? Explain its Characteristics.

A: Current liability refers to the obligation of enterprise which are due within normal cycle of…

Q: If a contingent liability is probable but estimable only within a range, what amount, if any, should…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Distinguish between a current liability and a long-termdebt.

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Q: Which of the following would most likely be classified as a current liability?

A: It can be defined as the liability that becomes due and is to be repaid with a span of 12 months or…

Q: Analyse the concept of “Limited liability”

A: The shareholders of a company or the partners of a partnership have to initially put up some capital…

Q: Which of the following is most likely to be classified and reported as a current liability?

A: Liabilities are reported in the balance sheet of the company.

Q: What is the difference between a current liability and a long-term liability?

A: Liabilities are the amount of money which a company raise from outside. The amounts can be raised…

Q: Under IFRS, a provision is the same as: a.   a contingent liability. b.   an estimated liability. c.…

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Q: What is the difference between the use of the term contingent liability in U.S. GAAP and IFRS?

A: Contingent Liability  Contingent liability is one form of liability that arises based on a…

Q: What is a contingent liability? Provide some examples of contingencies.

A: Explain the meaning of contingent liability and provide some examples: A contingent liability, as…

Q: Which of the following is also called a "liability waiver"? confidentiality clause noncompete…

A: An obligation or a liability is something an individual or organization owes, it usually includes…

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 contingency is likely to occur shortly.