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Describe How to Account for and Report on Contingent Liabilities

question 54

Essay

Describe how to account for and report on contingent liabilities.

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Definitions:

Professional

A person engaged in a specified activity as one's main occupation rather than as an amateur.

Negligent

Failing to exercise the care that a reasonably prudent person would exhibit under similar circumstances.

Foreseen Users

Individuals who are reasonably anticipated to use a product or service, considered by manufacturers and service providers in liability assessments.

Near Privity

A legal doctrine that expands the scope of who can sue for breach of contract to include parties with a close enough relationship to the transaction, though not directly involved.

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