Contingent Liabilities Meaning, Examples, and Accounting Entries
As a general rule, contingent liabilities, whether recognized or not, must be disclosed. If any of these elements cannot be calculated reliably, that fact should be stated. A type of contingent liability, warranty obligations, are present when a company guarantees that their product would work for a certain period or meet certain standards. These obligations can become actual liability if the product fails to meet the warranty conditions. Any probable […]
