Question: A liability is a future obligation and a current liability is a future obligation that is due within 1 year. A contingency can result in

A liability is a future obligation and a current liability is a future obligation that is due within 1 year.

A contingency can result in a gain or loss.

1. What are the criteria to determine whether to report the contingency in financial statement?

2. Provide a detailed example of a contingency liability in publicly traded organization.

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