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topjm [15]
2 years ago
15

A company is involved in a lawsuit for which the contingent liability is remote. How should the liability be treated on the bala

nce sheet
Business
1 answer:
user100 [1]2 years ago
8 0

A company is involved in a lawsuit for which the contingent liability is remote. The liability should be treated on the balance sheet as unrecorded and undisclosed.

On the balance sheet, the liability should be treated in a manner that is unrecorded and undisclosed:

  • The balance sheet stands for a financial statement that communicates the book value of a particular organization.
  • Contingent liabilities rely upon the outcome of an unlikely event.
  • These contingent obligations become liabilities in the future.
  • If the contingent liability happens to be remote, then it must not be reflected in the balance sheet.
  • The liability should be treated on the balance sheet as unrecorded and undisclosed.

Therefore, if a company is involved in a lawsuit for which the contingent liability is remote then the liability should be treated on the balance sheet as undeclared and undisclosed.

Learn more about liabilities here:

brainly.com/question/24534918

#SPJ4

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nirvana33 [79]

Answer:

TRIAL BALANCE

Assets:

Cash $2,920

Accounts Receivable $3,051

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Total assets 10,571

Liabilities + Stockholders' Equity

Accounts Payable $2,200

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Retained Earnings $1,496

Total liabilities + stockholders' equity 10,571

Explanation:

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6. A debit posting to Salaries and Wages Expense of $670 was omitted.

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7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.

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Salaries and Wages Expense 3,400 + 670 - 575 = 3,495

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Cash $2,870 + 180 - 130 = 2,920

Accounts Receivable $3,231 - 180 = 3,051

Supplies 800 - 500 = 300

Equipment 3,800 + 500 = 4,300

Accounts Payable 2,666 - 466  = 2,200

Unearned Service Revenue 1,200 - 325 = 875

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4 0
3 years ago
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Answer:

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Answer:

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