Answer the Following Four Questions

question 125

Essay

Answer the following four questions.
A.What is a contingent liability?
B.When must a contingent liability be recorded through a journal entry?
C.When should a contingent liability be disclosed in the footnotes to the financial statements?
D.When is disclosure of a contingent liability not required?

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Definitions:

Kettle

A pitlike depression in glacial deposits, commonly a lake or swamp; formed by the melting of a large block of ice that had been at least partly buried in the glacial deposits.

Coastal Dunes

Sand formations located near coastlines, formed by the wind's movement of sand.

Shorelines

The boundary line between land and a body of water, such as a sea, lake, or river.

Tilt

A slant or lean in a particular direction, often away from a perpendicular or horizontal position.