Which of the Following Is True of a Contingent Liability

C It is an actual liability that depends on a past event. A contingent liability is a liability that may occur depending on the outcome of an uncertain future event.

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A contingent liability is accrued even though it cannot be reasonably estimated.

. The relevance of a contingent liability depends on the probability of the contingency becoming an actual liability its timing and the accuracy with which the amount associated with it can be estimated. C It is an actual liability that depends on a past event. 11 Which of the following is true of a contingent liability.

A contingent liability is a potential obligation that depends on the future outcome of pasteventsd. A It is a potential liability that depends on a future event. B It is an actual liability that is difficult to estimate.

A contingent liability is recorded if the. All contingent liabilities should be reported as liabilities on the financial statementseven those that are unlikely to occurc. D It is a liability resulting from a lawsuit settled in court.

Which of the following statements about contingent liability is true. A contingent liability is not disclosed in the financial statements. A contingent liability is a potential obligation arising from a past event.

For reporting purposes contingent liabilities are sorted into three categories depending on the likelihood of their becoming actual liabilities. Which of the following is TRUE of a contingent liability. A contingent liability is a potential liability that may or may not occur depending on the result of an uncertain future event.

D It is a liability resulting from a lawsuit settled in court. Asked Aug 27 2018 in Business by j_miller19. They occur in the present.

Which of the following is TRUE of a contingent liability. A contingent liability is the result of a loss contingency. Thus an event must occur and when it does the liability is triggered.

A It is a potential liability that depends on a future event. A contingent liability should be accrued if the loss is probable and the amount of theloss can be reasonably estimated. C It is an actual liability that depends on a past event.

A contingent liability definitely exists as a liability but its amount and due date are indeterminable. If a court is likely to rule in favor of the plaintiff whether because there is strong evidence of wrongdoing or some other factor the company should report a. Contingent liabilities represent losses.

An unforeseen obligation is recorded if the possibility is logical and the measure of the risk can be sensibly assessed. The contingency is about the amount. Explanation-An consequence of an unknown potential occurrence is a contingent risk and can be a liabilityIf the contingency is probable and the sum of liability may be accurately calculated a contingent liability is documented.

The amount or existence of a contingent liability depends on some future event. In this case that something else is the liability. B It is an actual liability that is difficult to estimate.

A contingent liability is A a potential liability that depends on a future event. A It is a potential liability that depends on a future event. A contingency implies that something must occur before something else is triggered.

A contingent liability is recorded with a journal entry only if the contingency is both probable and the amount can be estimated. B It is an actual liability that is difficult to estimate. A contingent liability is a liability or responsibility that might happen contingent upon the result of a dubious future occasion.

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Ias 37 Decision Tree 14 Decision Tree Accounting Abc