Name two loss contingencies that almost always are accrued.

Q: Explain Quitclaim Deed?

A: Quitclaim Deed: Quitclaim Deed is also called as non-warranty deed. A quitclaim deed is considered…

Q: Once § 1231 gains are netted against § 1231 losses, if the gains exceed the losses, the net gain is…

A: Internal Revenue Code (IRC):  Internal Revenue Code is generally referred to as “The CODE” outlines…

Q: Describe when and how a net operating loss carryforward and a net operating losscarryback are…

A: Net Operating Loss Carryforward:   The net operating loss is considered as negative taxable income.…

Q: The expense recognition principle relates

A: Expense recognition is based on accrual and matching concept where accrual concept states that…

Q: A provision may be the equivalent of an estimated liability or a loss contingency that is accrued…

A: In this question we will understand that how a provision may be equivalent of an estimated liability…

Q: Which of the following concept states that "the organization should account for all possible…

A: Owner's equity includes the capital invested by the owners of the company and the retained earnings.…

Q: Owner's withdrawal decreases the owner's Claims on Assets

A:

Q: Define misappropriation of assets and give two examples of misappropriation of assets.

A: Asset: It represents the resources that are owned by the business.

Q: State the rules in case of the thing to be delivered is lost with the debtor's fault or without his…

A: When one party to a legally binding agreement fails to deliver according to the terms of the…

Q: 21. What is the form that filled out by insured if a loss is suffered? *

A: Takaful is a sort of Islamic insurance in which members combine their funds to protect one another…

Q: gain (loss) on the transfer

A: Gain (loss) on the transfer of investment property = Fair value on the date of transfer - Carrying…

Q: Explain the difference between liquidated damages and penalities

A: Damage refers to the loss that results from some injury to a person, company, property, or…

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention  advocates for accounting all the prospective losses but leave…

Q: Define the following relative to like-kind exchanges: Boot Postponed gain or loss Gain or loss…

A: The like kind exchange is defined as the transaction of tax deferred which allows for asset disposal…

Q: Explain the accounting for gain and loss ­contingencies.

A: Contingencies:   Contingency is a situation where the outcome becomes uncertain and is resolved in…

Q: items into normal loss or abnormal loss.

A: Normal loss occurs naturally and cannot be avoided during manufacturing process. Abnormal loss…

Q: What are the two types of losses that can become evidentin accounting for long-term contracts? What…

A: The two types of losses that can become evident while accounting for long-term contracts are:(1) A…

Q: Assets is Outflows or other using up assets or incurrence of liabiliti true

A: An income statement is a business financial statement that displays how revenue (the money collected…

Q: 2. When two or more policies cover the same loss, the right of the one insurer to call upon the…

A: The following are some of the Principles of Insurance Principle of Contribution Principle…

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: Is the nature of the gainor loss considered ordinary or long-term?

A: Ordinary gain or loss means any income which doesn't result as Capital gain or loss. Capital Gain or…

Q: Depreciation expense is considered as allowable deduction Select one: True False

A: Depreciation expenditure is the amount depreciated for a specific period (e.g., quarter or year),…

Q: How do U.S. GAAP and IFRS differ in their treatment of a range of equally likely losses?

A: Loss contingency: Loss contingency is a contingency where the existing situations or circumstances…

Q: How are deductions and losses different? How are they similar? Explain

A: Deductions: As deductions, the existing expenses made for the development of current period profits…

Q: identify the causes of loss that are covered under the broad form that are not covered. under the…

A: Loss is a situation in which a company is not able to meet its financial obligations or payments or…

Q: List and briefly describe the three categories of likelihood that a future event(s) will confirm the…

A: Loss contingency: Loss contingency is contingency where existing situation or circumstances where…

Q: Under what situation in spoiled working the loss to charged to FOH ???

A: spoilage : when the manufacturing process takes place some materials are tend to be produced…

Q: Compute the réálized gain or loss, recognized gain or loss, and the adjusted basis

A: A gain or loss is called rocgnized when it is not actually realised but from…

Q: Define a loss contingency. Provide three examples

A: Loss Contingency:   It is a form of contingency where an existing situation or circumstance where…

Q: B. Patrimonial loss for loss of financial support.

A: Insurance refers to a contract between the insurance company and insurer in which a fixed amount of…

Q: What are (a) pass-through expenses, (b) recoverable expenses, and (c) common area expenses? Give…

A: a) Pass through expense: This is an expense which the customer pays directly to a third party or…

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Identify and briefly explain the four types of divestitures.

A: Following are the 4 kinds of divestitures: Strategic Buyers: We are either vertically or on a level…

Q: Actuarial (Remeasurement) gains and losses are reported as OCI as they occur using a. U.S. GAAP. b.…

A: Both US GAAP and IFRS requires to record acturial gains or losses through other comprehensive income…

Q: various time related aspects of consequential losses.

A: Damage to business property or equipment causes a consequential loss, which is an indirect negative…

Q: Under what circumstances should a loss contingency be accrued?

A: Loss contingency: Loss contingency is contingency where existing situation or circumstances where…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.