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Answer-----------True
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A contingent liability, if probable and estimated is reported on the balance sheet as a liability. Although if contingent liability cannot be estimated then it is shown in the notes to balance sheet only.
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A contingent liability is reported on the balance sheet if it is probable and can be...
1.A contingent liability that is probable and can be reasonably estimated will immediately result in: Multiple...
1.A contingent liability that is probable and can be reasonably estimated will immediately result in: Multiple Choice an increase in both liabilities and stockholders’ equity. an increase in liabilities and a decrease in net income. an increase in liabilities without any need for financial statement disclosure. an increase in liabilities and a decrease in assets. 2.Which of the following statements is not true regarding the cash flow statement? Multiple Choice The cash flow statement provides information about changes in all...
match the following: Deferred revenues Disclosure of a contingent liability Notes payable Recording a contingent liability...
match the following:
Deferred revenues Disclosure of a contingent liability Notes payable Recording a contingent liability Current portion of long-term debt Match each of the options above to the items below. A written promise to repay the amount borrowed plus interest. Loss is probable and amount is reasonably estimable. Debt that will be paid within one year of the balance sheet date. Loss is reasonably possible and amount is reasonably estimable. A liability that requires the sacrifice of something other...
A contingent liability that is probable and can be reasonably estimated must be I. Disclosed. a....
A contingent liability that is probable and can be reasonably estimated must be I. Disclosed. a. b. Not disclosed. Recorded. d. Paid. 2. Suppose that Neuman Exploration Tours has filed a lawsuit against a competitor for an alleged trademark violation. At the end of the year, Neuman's attorney estimates that the company will likely win the lawsuit and be awarded between S1.5 and $2 million, with the most likely amount being S1.8 million. How much should Neuman record as a...
Question 8 0/0.41 pts A company has a lawsuit pending with regard to patent infringement. The...
Question 8 0/0.41 pts A company has a lawsuit pending with regard to patent infringement. The amount of the loss can be estimated and has a probable chance of occurrence. What journal entry is required? debit Estimated Lawsuit Loss and credit Estimated Lawsuit Liability debit Lawsuit Loss and credit Cash debit Estimated Lawsuit Loss and credit Cash debit Cash and credit Estimated Lawsuit Liability Question 7 0/0.41 pts Unearned Service Revenue relating to services, to be provided in one month,...
Select the contingent liability from the list below. Pending court case with a probable favorable outcome...
Select the contingent liability from the list below. Pending court case with a probable favorable outcome Possible receipt from a litigation settlement Obligations related to product warranties Tax loss carryforwards
a. Recording of a contingent liability 1. An IOU promising to repay the amount borrowed plus...
a. Recording of a contingent liability 1. An IOU promising to repay the amount borrowed plus interest 2 Payment amount is reasonably possible and can be b. Unearned revenues reasonably estimated c. The riskiness of a business's obligations. 3. Mixture of liabilities and equity a business uses d. Disclosure of a contingent liability 4 Payment amount is probable and can be reasonably estimated 5. A liability that requires the sacrifice of something other e. Interest on debt than cash 6...
True or False: A liability should be classified on the balance sheet as a "current liability...
True or False: A liability should be classified on the balance sheet as a "current liability when the company expects to decrease or satisfy the liability within one year or the operating cycle, whichever is longer. Select one: True False
pters 7-9 Match the following Current portion of long-term debt Notes payable Recording a contingent liability...
pters 7-9 Match the following Current portion of long-term debt Notes payable Recording a contingent liability Disclosure of a contingent liability Deferred revenues Match each of the options above to the Items below. A written promise to repay the amount borrowed plus interest Loss is probable and amount is reasonably estimable Debt that will be paid within one year of the balance sheet date. Loss is reasonably possible and amount is reasonably estimable. A liability that requires the sacrifice of...
(3) A Contingent liability is a potential rather than an actual liability because its depends on...
(3) A Contingent liability is a potential rather than an actual liability because its depends on a future event. Some event must happen( the contingency) for a contingent liability to have to be paid. Contingent liabilities are journalized when the likelihood of an actual loss is probable and the amount of the expense can be reasonably estimated. Rags to Riches, a clothing resale store, employs one salesperson, Dee Hunter. Hunters straight time wage is OMR 10 per hour, with time...
A contingent liability that has a remote chance of occurrence should be disclosed in the financial...
A contingent liability that has a remote chance of occurrence should be disclosed in the financial statement footnotes. True False
match the following:
Deferred revenues Disclosure of a contingent liability Notes payable Recording a contingent liability Current portion of long-term debt Match each of the options above to the items below. A written promise to repay the amount borrowed plus interest. Loss is probable and amount is reasonably estimable. Debt that will be paid within one year of the balance sheet date. Loss is reasonably possible and amount is reasonably estimable. A liability that requires the sacrifice of something other...
A contingent liability that is probable and can be reasonably estimated must be I. Disclosed. a. b. Not disclosed. Recorded. d. Paid. 2. Suppose that Neuman Exploration Tours has filed a lawsuit against a competitor for an alleged trademark violation. At the end of the year, Neuman's attorney estimates that the company will likely win the lawsuit and be awarded between S1.5 and $2 million, with the most likely amount being S1.8 million. How much should Neuman record as a...
Question 8 0/0.41 pts A company has a lawsuit pending with regard to patent infringement. The amount of the loss can be estimated and has a probable chance of occurrence. What journal entry is required? debit Estimated Lawsuit Loss and credit Estimated Lawsuit Liability debit Lawsuit Loss and credit Cash debit Estimated Lawsuit Loss and credit Cash debit Cash and credit Estimated Lawsuit Liability Question 7 0/0.41 pts Unearned Service Revenue relating to services, to be provided in one month,...
a. Recording of a contingent liability 1. An IOU promising to repay the amount borrowed plus interest 2 Payment amount is reasonably possible and can be b. Unearned revenues reasonably estimated c. The riskiness of a business's obligations. 3. Mixture of liabilities and equity a business uses d. Disclosure of a contingent liability 4 Payment amount is probable and can be reasonably estimated 5. A liability that requires the sacrifice of something other e. Interest on debt than cash 6...
True or False: A liability should be classified on the balance sheet as a "current liability when the company expects to decrease or satisfy the liability within one year or the operating cycle, whichever is longer. Select one: True False
pters 7-9 Match the following Current portion of long-term debt Notes payable Recording a contingent liability Disclosure of a contingent liability Deferred revenues Match each of the options above to the Items below. A written promise to repay the amount borrowed plus interest Loss is probable and amount is reasonably estimable Debt that will be paid within one year of the balance sheet date. Loss is reasonably possible and amount is reasonably estimable. A liability that requires the sacrifice of...
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