Accounting Week 3

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There are 3 contingent liability categories specified in generally acceptable accounting principles (GAAP): probable, possible, and remote. In general, probable contingencies are more likely to occur and can be reasonably appraised. Possible contingencies are less likely to occur, but could still occur. Remote contingencies are not likely to occur.

Respond to the following in a minimum of 175 words: 

  • Discuss the 2 primary differences between assets on the balance sheet.
  • Discuss reporting requirements for contingencies.
  • Explain 2 contingent liability examples.

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