Which of the following is an example of a contingent loss (expense)likely to be recognized in the accounts on a regular basis each year? lawsuit loss warranty expense bad debt expense
A) yes no no
B) no yes no
C) no yes yes
D) yes yes yes

Question

Quizplus · Accepted Answer

Warranty expense and bad debt expense are examples of contingent losses that are likely to be recognized in the accounts on a regular basis each year. Warranty expense is recognized due to the expectation of future costs associated with product warranties, and bad debt expense is recognized to account for expected losses from customers not paying their debts. A lawsuit loss is not regularly recognized each year as it depends on specific events that may not occur annually.

Which of the Following Is an Example of a Contingent