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Usually accrued Loss related to: 1) collectibility of receivables 2) obligations related to product warranties and product defects 3) premiums offered to customers

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Q: Which contingent liability is normally accrued?
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Related questions

What are contingent liabilities that are normally accrued?

A contingent liability which is normally accrued is estimated claims under a service warranty on new products sold.


What is the difference between contingent liability and off balance sheet liability?

There is no difference between Contingent Liability and Off Balance Sheet Liability.


What is journal entry for contingent liability?

the Journal entry for the above isRelated Expinditure DrContigent liability CR


Are Accrued wages a current liability?

Accrued liabilities are a current liability if they are due within one year.


Is the contingent liability added to the total liability?

Contingent liabilities are not added to total liabilities but shown as a note to financial statements that these are the liabilities that are contingent on certain event


Journal entry for contingent liability?

A contingent liability is a potential obligation that may arise in the future, depending on the outcome of a future event. It is documented in the financial statements as a disclosure rather than a recognition in the balance sheet. Contingent liabilities can include pending lawsuits, warranties, or product recalls, and their potential impact on the company's financial position should be clearly outlined in the journal entry.


How does contingent liability impact earnings?

Contingent liability can impact earnings because it is a projected and future liability. Not knowing what the outcome of the liability is, it can unexpectedly affect a large amount of earnings.


How do you record contingent liabilities?

A contingent liability is recorded in financial statements or books of accounts only if it is a probable contingency and if the liability amount can be estimated. No need to make a journal entryÊif the contingent liability is possible but not probable.Ê


What is the differnent between a current liability for an uncertain amount and a contingent liability?

Under current liability of uncertain amount liability is created on company although actual amount is unknown but in contingent liability, liability is not created on company unless specific date or time or occurence of any contingent action or activity.


Accrued income is asset or liability?

no


A liability that has been incurred but has not been recorded in the accounts is known as...?

An accrued liability


A liability that has been incurred but has not been recorded in the accounts is known as?

An accrued liability