9. Current Liabilities
Contingent Liabilities
9. Current Liabilities
Contingent Liabilities
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Practice this topic
- Multiple Choice
Sumsang designs and sells smartphones for personal and commercial use. During the current year, the product engineers notified management of a flaw in the design that could cause the latest model to spontaneously combust. After a further investigation, it was noted that a product recall was probable, with an estimated cost to the company of $2,500,000. What influence might this information have on the current year financial statements?
172views4rank - Multiple ChoiceA contingent liability is recorded in the financial statements if which of the following conditions are met?29views
- Multiple ChoiceWhich of the following situations is NOT considered a contingent liability?25views
- Multiple ChoiceWhich of the following is a contingent liability that must be disclosed in the financial statements?30views