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hram777 [196]
1 year ago
13

which type of contingent liability would most likely be found on a balance sheet prepared under us gaap? multiple choice questio

n. remote contingent liability reasonably possible contingent liability probable contingent liability that can be estimated
Business
1 answer:
xxTIMURxx [149]1 year ago
8 0

If a contingency is likely and its financial impact can be assessed with reasonable certainty, a contingent obligation must be recorded. Three types of contingent liabilities are recognized by GAAP.

A contingent liability is what?

A contingent obligation is a responsibility that might materialize based on how a future event plays out. If a contingency is likely and the liability's amount can be anticipated with reasonable certainty, contingent liabilities are recorded. Unless all requirements are not met, the obligation may be mentioned in a footnote to the financial statements.

When Must I Recognize Contingent Liability?

You must be aware of the contingent responsibilities you have assumed if you own a firm or manage its finances. These also need to be recorded. Companies must record contingent liabilities in accordance with the three accounting principles of full disclosure, materiality, and prudence under both IFRS and GAAP (international financial reporting standards).

To learn more about contingent liability from the given link.

brainly.com/question/17963028

#SPJ4

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This is what is going on with Tom; despite having been presented information by Sam regarding how low taxes in general creates higher tax revenue, Tom still believes that taxing the rich would generate greater tax revenue to reduce the effect of recession.

4 0
3 years ago
Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive press
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Answer:

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Explanation:

the target cost will the one which achieve the target profit at the selling price of the market.

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3 0
3 years ago
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8 0
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Determine the maturity date and compute interest for each note. (Use 360 days a year. Do not round intermediate calculations.) N
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Answer:

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1              March 7            $12,000           5 %                    60 days

2.             May 21             $18,000           7%                      90 days

3.            October 26      $ 14,000           4%                     45 days

1. Maturity date = 6 May

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Interest expenses = $100

2. Maturity date = 19 August

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Interest expenses = $315

3. Maturity date = 10 December

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Interest expenses = $70

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