A contingent liability should be disclosed to the financial statement notes if there is a reasonably possibility that a loss (or expense) will occur.
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Q2: All contingent liabilities should be reported on
Q4: Purchasing merchandise inventory on account results in
Q6: The current portion of a long-term debt
Q7: Unearned revenues should be classified as Other
Q8: Contingent liabilities are reported on the balance
Q9: The lower the sales tax rate, the
Q10: Employee compensation is a major expense for
Q10: A future obligation that may arise due
Q11: It is possible for the warranty expense
Q12: A current liability must be paid out
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