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What is financial liability?

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Answered 2007-06-20 14:29:06

If you have financial liability, they you have to pay money if something goes wrong. Liability means you can be held responsible and financial means money.

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Contingent liability is not shown in financial statments until it if considerably clear that liability will be happend and until that time it is shown as a note in notes to financial statement section.

Dividend payable is liability and shown under liability side of balance sheet.

Property owners Liability is the financial , legal liability attaches to property owners due to their property, where as tenants libility vice versa

There is no journal entry for contingent liability because contingent means which is not occurred and not sure that when will that liability will be created or liability is depended on certain event that's why contingent liability is shown under financial statements notes as contingent liability.

Annual liability is the amount of liabilities you have at a specfied date, while annual flow liability is the amount of annual liability thatmust be repaid during the next financial year.

Contingent Liability is not shown at the face of balance sheet but shown as a notes to financial statements as a note about the latest information of contingent liability.

Example of the contigent liability are Court cases regarding any financial dispute, bills sent for collection.

VAT payable is liability for business and shown in liability side of balance sheet of business.

Interest payable is liability to be cleared in future that's why shown in liability side of balance sheet.

Bank loan is a liability for business not an asset for business.

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

That part of interest which is due withing next 12 month or due in current financial year then that would be current liability and the remaining part will be non-current liability.

Community Insurance provide a number of financial services. They provide general liability, auto liability and school board legal liability services. One can make claims online.

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

A financial liability is defined as the obligation to give cash to another entity under certain conditions. Some examples of financial liabilities are accounts payable and loans.

An insurance policy is a contract of Indemnity. It is a means of transferring risk of financial loss and or financial liability to another party, Namely the insurance company.

Yes, if he has sufficient credit and wants to assume that kind of potential financial liability.

Accounts Payable belongs in the Balance Sheet as a Current Liability.

No, in the United States it is illegal to operate a motor vehicle on public roads without proof of "Financial Responsibility".A motor vehicle liability insurance policy is only one of several means by which to meet our financial responsibility requirements.

LLC stands for limited liability company. That means that the company does not have full liability if the company has financial issues such as a lawsuit.

Contingent liability is not shown in balance sheet because the actual occurance or amount of liability is unknown until some specific future time or event that's why it is shown as note in notes to financial statement section.

Cheryl Toman-Cubbage has written: 'Professional liability pitfalls for financial planners' -- subject(s): Financial planners, Malpractice

If asset is increased it is Debited in Ledger and if liability increases it is credited. Accounts Receivables are treated as assets. Both Assets and Liabilities are shown in face of Statement of Financial Position.

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