1. What Is a Contingent Liability

question 107

Essay

1. What is a contingent liability?
2. When must a contingent liability be recorded through a journal entry?
3. When should a contingent liability be disclosed in the footnotes to the financial statements?
4. When is disclosure of a contingent liability not required?

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Definitions:

Gatekeeper

An individual or entity that controls access to something or decides who gets access to resources or information.

Rambling Monologue

A lengthy, often tedious speech made by a single person, lacking a clear focus or endpoint, which can lead to listener disengagement.

Rating

An assessment or evaluation of something, typically in terms of quality, quantity, or some combination of factors.

Voting

The act of making a choice or expressing an opinion in a group by casting a ballot, raising a hand, or using any other method designated for decision-making.