Distinguish between contingent liabilities and commitments.

Distinguish between contingent liabilities and commitments.

Answer:

Contingent liabilities are future obligations to an outside party for an unknown amount resulting from activities that have already taken place.  Commitments are agreements to commit the company to a set of fixed conditions in the future regardless of what happens to profits or the economy as a whole.

Comments

Popular posts from this blog

JAD Advantages and Disadvantages

What is JAD and how are users involved? What are advantages and disadvantages of JAD?