Other significant liabilities Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities. To Describe: The contingent liability with an example.

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Answer 1

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.

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Answer 2

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.

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Answer 3

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.

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Answer 4

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.

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Answer 5

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.

Answer 6

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.

Answer 7

Chapter K, Problem 1Q

To determine

Other significant liabilities

Other significant liabilities are liabilities other than current and long-term liabilities. These liabilities have a significant impact on the future cash flows and financial position of the company. Contingent liabilities, lease liabilities and additional liabilities for employee fringe benefits are the examples of other significant liabilities.

To Describe: The contingent liability with an example.

Answer 8

Expert Solution & Answer

Explanation of Solution

The contingent liability is not treated as a liability of the company on the date of the balance sheet but it may become liabilities in the future date on the happening of an ambiguous event. Warranty liability is an example of contingent liability.