Contingencies Flashcards
1
Q
Examples of Contingent Liabilities
A
obligations related to product warranties and pending or threatened litigation
2
Q
Remote Contingencies
A
normally do not require disclosure.
3
Q
Disclosure of Remote Contingencies: Exceptions
A
guarantees of indebtedness of others, in which case disclosure, but not accrual, is required.
4
Q
Gain Contingencies
A
should be disclosed but not recognized as income.
