Contingent Liability Journal Entry How To Record Contingent Liabilities
Overview of Contingent Liability Journal Entry The potential liabilities whose occurrence depends on the outcome of an uncertain future event are accounted for as contingent liabilities in the financial statementsFinancial StatementsFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels....