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Define the Term Contingent Liability and Discuss the Criteria Accountants

question 32

Essay

Define the term contingent liability and discuss the criteria accountants and auditors use to classify these accounting events.


Definitions:

Ministerial Power

The authority granted to government officials to perform certain predefined duties, often without the power to use personal discretion.

Adjudicatory Powers

The authority granted to courts or other bodies to interpret and apply laws in legal disputes.

Procedural Rule

A rule that dictates the process or procedure of how legal matters are to be conducted.

Interpretive Rules

Regulations issued by administrative agencies to clarify and explain the meaning and intent of statutes they enforce.

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