After Reading About Contingencies in Her Text, an Introductory Accounting

question 73

Essay

After reading about contingencies in her text, an introductory accounting student believes that such items should never be recorded.
Instructions
Explain what criteria must be met before a contingent liability is recorded on the financial statements.

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Definitions:

Characters

In computing and digital media, this refers to letters, numbers, and symbols that are used in writing and data.

RAM

Random Access Memory, a type of computer memory that can be accessed randomly and is used by the operating system, application programs, and data in current use.

WordPad

WordPad is a basic text-editing program included with Windows operating systems, allowing users to create and edit documents with simple formatting options.

Document

A file that contains text, images, or other data. It can be digital or physical.