Answered: Which of the following is not a…

Which of the following is not a secondary mode of extinguishing obligations? * Changing the object of the obligation with the consent of the parties Death of both parties Compromise Prescription

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9Q: What are the two FASB required conditions for a contingent liability to be recognized?

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Concept explainers

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.

Question

Which of the following is not a secondary mode of extinguishing obligations? *

Changing the object of the obligation with the consent of the parties

Death of both parties

Compromise

Prescription

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