Contingent liabilities, Cost Accounting

These should be distinguished from estimated liabilities. Estimated liabilities are identified liabilities where the amount is uncertain. Contingent liabilities conversely are not liabilities at the current moment. They may turn into liabilities only on the happening of a specific event. Conversely, both the amount and the liability or obligation is uncertain till the specified event occurs in future. These may comprise items as a claim against the company contested in a court. Merely if the court offers an unfavourable verdict, it turns into a liability. They are not listed as liabilities in the body of the balance sheet. Though, if the firm wishes, this may make same provision for the same.

Posted Date: 4/4/2013 1:46:25 AM | Location : United States







Related Discussions:- Contingent liabilities, Assignment Help, Ask Question on Contingent liabilities, Get Answer, Expert's Help, Contingent liabilities Discussions

Write discussion on Contingent liabilities
Your posts are moderated
Related Questions
what is accounting treatment for material losses due to abnormal reasons

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

importance of marginal costing &standing costing

Explain:- Q Why is the statement of cash flows useful? Q. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from opera

Determine the additional cash a company could obtain from its working capital accounts if it can improve its average collection period by three days and inventory turnover by 0.5 t

Identify and explain many classification of costs for planning, control, performance evaluation and decision making.

A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) if the Canadian dollar is expected to depreci

Alameda Service center just purchased an automobile hoist for $ 14000. The hoist has a 6 year lifeand an estimated salvage value of $1481. Installation costs were $3020, and freigh

Accounting Records - Nature and Purpose of Cost Accounting The quantitative information employed in the management and cost accounting systems can be obtained from with two ac