What is a contingent debt obligation?
What is a contingent debt obligation?
Contingent Debt means a debt that is not presently fixed or determined but may become fixed or determined in the future with the occurrence of some certain event.
What is the meaning of contingent liabilities?
A contingent liability is a liability that may occur depending on the outcome of an uncertain future event. A contingent liability is recorded if the contingency is likely and the amount of the liability can be reasonably estimated.
Is a bank guarantee a contingent liability?
Bank guarantees are contingent liabilities.
What are three categories of contingent liabilities?
There are three GAAP-specified categories of contingent liabilities: probable, possible, and remote.
What do you mean by contingent?
1 : dependent on or conditioned by something else Payment is contingent on fulfillment of certain conditions. a plan contingent on the weather. 2 : likely but not certain to happen : possible. 3 : not logically necessary especially : empirical.
Which of the following obligations are commonly classified as current liabilities?
Current liabilities are debts or obligations that arise from past business activities and are due for payment within a company’s operating period (one year). Common examples of current liabilities include accounts payable, unearned revenue, the current portion of a noncurrent note payable, and taxes payable.
Which of the following is a contra liability?
Examples of contra liabilities include a discount on notes or bonds payable. Contra liabilities hold a debit balance. Contra liability accounts are not as popular as contra asset accounts. Companies that issue bonds are likely to use contra liability accounts.
Are bills payable liability?
Bills payable consist of the money that a bank borrows, mainly on a short-term basis, and then owes to other banks. Bills payable is also a British term for accounts payable, which is a current liability on the balance sheet.
