What are the three required conditions for a contingent liability to exist?

What are the three required conditions for a contingent liability to exist?

Answer:

1. There is potential for future payment to an outside party or the impairment of an asset that resulted from an existing condition.
2. There is uncertainty about the amount of the future payment or impairment.
3. The outcome will be resolved by some future event or events.

Comments

Popular posts from this blog

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

What are the three dimensions to business problems? Give an example of each.

A laboratory assistant prepared solution of 0.8 M, 0.6 M, 0.4 M, and 0.2 M sucrose, but forgot to label them. After realizing the error, the assistant randomly labeled the flasks containing these four unknown solutions as flask A, flask B, flask C, and flask D.