When is a contingent liability is reported?   Select one: when the likelihood of the loss is reasonably possible and a range of outcomes can be estimated  when the future events will possibly occur, and the amount of the loss is material when the amount of the loss can be reasonably estimated when the likelihood of the loss is probable and the amount of the loss can be reasonably estimated

What controversy relates to the accounting for net operating loss carryforwards?  What is your opinion on the matter?

The realization principle underlies the accounting practices of depreciating plant assets and amortizing the cost of unexpired insurance policies.  True  False

The following items represent various types of liabilities. Identify if the following independent situations should be (a) recorded in the financial statements, (b) disclosed in a footnote in the financial statements, or (c) neither. ______ 1. A manufacturing company is sued for alleged product liability. The company’s attorney does not feel that the suit will result in liability to the company, but a loss is possible. If adversely adjudicated, the liability would be material. ______ 2. Alpha has sold products to Sparkle Jewelers, a retailer that sold the products to customers. The manufacturer’s warranty offers replacement of the product if it is found to be defective within 90 days of the sale to the consumer. Historically, 0.06% of the products are returned for replacement. ______ 3. A customer has filed a lawsuit for a minor amount against Sparkle Jewelers. Sparkle’s attorneys have reviewed the case and have found that many similar cases have never been awarded to the plaintiff.

Define net operating loss.

What is depreciation, how is it calculated and how does it relate to the matching principle of accounting? Are there any estimates in depreciation and what are they? Why is it better to use these estimates than to not depreciate at all? What would be the alternatives to depreciation and what kinds of problems do they present? Please think about where we report equipment and similar items on the financial statements.

22. Uncertainties such as natural disasters that could happen in the future: A. Are not contingent liabilities because they are future events not arising out of past transactions or events.B. Are contingent liabilities because they are future events arising from past transactions or events.C. Should be disclosed because of their usefulness to financial statements.D. Are estimated liabilities because the amounts are uncertain

define contingent liability and give an example. How would you management of a company distort a liability if they wish to report less liability in the financial statement.

Which of the following statements is false?Select one:a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will occur.b. A contingent liability should be accrued if the loss is probable and the amount of the loss can be reasonably estimated.c. A contingent liability is a potential obligation that depends on the future outcome of past events.d. All contingent liabilities should be reported as liabilities on the financial statements, even those that are unlikely to occur.