Contingent liabilities are obligations that may or may not materialize
Q: Briefly explain off-balance-sheet assets and off-balance-sheet liabilities with an appropriate…
A: Off-balance-sheet items seem to be those items that do not show up on a company's balance sheet.…
Q: A present obligation that is probable and for which the amount can be reliably estimated should…
A: The estimated expenses are the expenses which can be valued on the basis of past experiences or…
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: What are Contingent Liabilities? Give an example. What are the factors that determine the reason…
A: A liability, the occurrence of which is uncertain that is it may or may not occur is known as a…
Q: Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they…
A: A warranty liability is a liability account that reports the estimated amount that a company will…
Q: What is the debt with a subjective acceleration clause in the exposure draft, Topic 470?
A: The is based on the concept of accounting of debt and accounting treatment of debt in books of…
Q: How are contingent liabilities accounting for? a) In your own word, what is a contingent liability?…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: According to IAS 1, what are the classification of liabilities? O Current, noncurrent, estimated and…
A: Answer - According to IAS 1 - Liabilities are basically classified as Current and Non Current…
Q: For most long-term liabilities, an important consideration is that they are properly authorized.…
A: The long term liability is reported as a long term because they covers many years and the majority…
Q: what conditions are not necessary to exclude a short term obligation from current liabilities?
A: Current liabilities: It refers to short term financial obligations that are to be discharged within…
Q: When should a contingent liability be recognized and reported on the financial statements? A.…
A: Contingent liability: A liability can occur on future uncertain events.
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events refers to the happening of event through accident or chance. In short, it is a…
Q: Which of the following is not a condition necessary to exclude a short-term obligation from current…
A: SHORT-TEAM OBLIGATIONS: Debt, also called current liabilities, is a firm's financial obligations…
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 are contingent liabilities?
A: Liabilities by and large, are a commitment to, or it is an amount that one owes to another person.…
Q: Under what conditions should a short-term obligation beexcluded from current liabilities?
A: Current liabilities: The debt obligations owed by a company to creditors and suppliers and are to be…
Q: How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?
A:
Q: Debt guarantees are not usually disclosed as a contingent llablity. O True False
A: Solution- Debt guarantee are not balance sheet items. They are shown as a contingent liability and…
Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…
A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…
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: An obligation that is contingent on the occurrence of a future event should be reported in the…
A: Financial statements: The financial statements refer to the combination of a various statements like…
Q: Bonds Payable is a type of current liabilities. True False
A: Bonds payable is a liability for the business, it means amount of bonds that the company has to…
Q: What amount should be reported as total noncurrent liabilities?
A: Answer: 1,620,00
Q: Liabilities are
A: Balance sheet includes the assets, liabilities and stockholders' equity of the company that…
Q: the stakeholders position is not protected by a contract -unlike the provider of debt- how is it in…
A: Shareholders are the individuals who get ownership of the organization when they invest in their…
Q: When the debtor binds himself to pay when his means permit him to do so, the obligation is:
A: When the debtor binds himself to pay when his means permit him to do so, the obligation is: Answer -…
Q: Contingent liabilities are not recorded in the financial statements. True False
A: As per IAS 37, Provisions, contingent assets and contingent liabilities A contingent liability is a…
Q: 1. Which of the following is not an essential characteristic of a liability? * a. It is a present…
A: Liabilities may he defined as existing obligations which a business enterprise intends to meet in…
Q: What are the audit procedures used to identify contingent liabilities?
A:
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events are the events that are considered as the "act of God" because naturally, the act…
Q: Are monetary obligations under a contract of surety intransmissible by their nature, by stipulation,…
A: Contract of surety relates to the contract of guarantee a contract is to perform the promise or…
Q: Which of the following liabilities would be considered nonrecourse?
A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…
Q: Which of the following statements is false? Select one: a. A contingent liability should be…
A: A contingent liability is a liability which may occur in the future due to some circumstances not…
Q: Which of the following is not a ground for the extinguishment of an obligation? O Condonation or…
A: Following is the correct answer
Q: Liabilities are present obligation which represent O legal only O expected value O neither legal or…
A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…
Q: What is the relationship between provisions, onerous contracts, contingent liabilities and other…
A: The book in which the company records all its transactions initially is termed as journal book. From…
Q: Define what is an off-balance sheet activity? Also provide example of an off-balance sheet an…
A: Off-Balance sheet Activity means the assets or liabilities which are not reflected in the balance…
Q: Contingent liabilities must be recorded if: O The future event is probable and the amount owed can…
A: Contingent liability is the liability that occurs which depends on the future event that may or may…
Q: True (t) or False (f) _____ Contingent liabilities should be recorded in the accounts if there is a…
A: The contingent liability represents the obligation that arise in the organization due to its past…
Q: The following obligations are immediately demandable, EXCEPT: a pure obligation obligation with…
A: There are obligation to be paid immediately but there are some conditional liabilities they occur…
Q: Suppose the analysis of a loss contingency indicates that an obligation is not probable. What…
A: Contingent Liability Contingent liability is one form of liability that arises based on a…
Q: Contingent liabilities that are probable and can be estimated are...
A: A contingent liability is an unforeseen obligation i.e. it has a potential risk that may occur in…
Q: A credit derivative allows creditors and debtors to _________ their exposure to credit risk. For…
A: A credit derivative is a financial contract that allows the parties to minimize their exposure to…
Q: Explain Contingent Liabilities.
A: Contingent liabilities are the liabilities of the company but they can not be classified as current…
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- What are Contingent Liabilities? Give an example. What are the factors that determine the reason for Contingent Liabilities?Accrued liabilities are obligations for which there is no external transaction. Select one: True Falsewhat conditions are not necessary to exclude a short term obligation from current liabilities?
- Liabilities that are not secured by specific assets are called: Multiple Choice O O O General credit obligations. Accrued liabilities. Indentures. Debt contracts.Which of the following liabilities would be considered nonrecourse?Contingent liabilities are not recorded in the financial statements. True False