Ask Question
BusinessBusiness
12 October, 06:16

A contingent liability: is only remotely possible. cannot be estimated. will result from a future event. is a potential liability that has arisen because of a past event or transaction. will only result when a remote event becomes probable. is remotely estimable and probable.

+3
Answers (1)
  1. 12 October, 06:44
    0
    will only result when a remote event becomes probable. is remotely estimable and probable.

    Explanation:

    Contingent liabilities are potential debts or obligations to pay, depending on the results of an uncertain future event. The requirement to pay does not exist now. The liability may occur or not occur depending on the outcome of an unpredictable future event.

    A contingent liability is relevant only if the amount of liability can be estimated accurately, and there is a likelihood of the future event happening. If these two factors can be established, then the contingent liability is disclosed in the books of accounts. Product warranties and pending lawsuits are good examples of contingent liabilities. Their outcomes are uncertain, but their related costs can be estimated.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A contingent liability: is only remotely possible. cannot be estimated. will result from a future event. is a potential liability that has ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. She might want to open a
Answers (2)
The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 8,919 Accounts receivable 72,922 Merchandise inventories 62,862 Prepaid expenses 4,600 Accounts payable $ 15,450 Notes payable 89,138
Answers (1)
A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period? A. $2,900. B. $2,700. C. $3,500.
Answers (1)
Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2018: 1. Service cost $ 345,000 2. Contributions to the plan 330,000 3. Actual return on plan assets 270,000 4.
Answers (1)
TrueBlue uses an evaluation form for sales reps which lists several specific behaviors, such as "follows up on customer leads" and "identifies potential contacts.
Answers (1)
New Questions in Business
Human resources that perform the functions of organizing, managing, and assembling the other factors of production are O entrepreneurs. O physical capital. O venture capital. O productive capital.
Answers (1)
Automated transactions for B2B e-commerce where the suppliers are able to automatically send data about shipments to purchasing firm and the purchasing firm able to provide production and inventory requirements and payment data to suppliers
Answers (1)
Which departments should be involved in creating content? a. All departments b. Just marketing c. Just marketing and sales d. All customer-facing departments Next
Answers (1)
Hall Co.'s allowance for uncollectible accounts had a credit balance of $24,000 on December 31, 2003. During 2004, Hall wrote off uncollectible accounts of $96,000.
Answers (1)
Services United is considering a new project that requires an initial cash investment of $78,000. The project will generate cash inflows of $29,500, $32,700, $18,500, and $10,000 over each of the next four years, respectively.
Answers (2)
Home » Business » A contingent liability: is only remotely possible. cannot be estimated. will result from a future event. is a potential liability that has arisen because of a past event or transaction. will only result when a remote event becomes probable.
Sign Up Forgot Password?