About This Chapter
Accounting for Liabilities & Contingencies - Chapter Summary
Whether you have a beginner's, intermediate or advanced understanding of accounting for liabilities and contingencies, this chapter's fun lessons can help you gain full comprehension. Top instructors provide in-depth analyses of estimated liabilities, contingency accounting and more. Gauge your knowledge of the lessons by taking multiple-choice quizzes and a chapter exam. If you have questions about specific topics, feel free to send them to our experts. Upon completion of this chapter, you will be able to:
- Describe the characteristics of current and long-term liabilities
- List types of known and estimated liabilities
- Share examples of contingent liabilities
- Grasp how to account for contingencies and environmental liabilities
- Explain how financial information for transactions is accounted for and disclosed as they apply to contingencies and liabilities
1. Current & Long-Term Liabilities: Definition & Characteristics
In this lesson, we'll define 'liabilities.' You'll also learn the difference between current and long-term liability. Finally, we'll discuss on which financial statement you'll find liabilities and provide examples of each type.
2. Known Liabilities: Definition & Types
In this lesson, you'll learn about known liabilities. We'll discuss three types of known liabilities: liabilities by agreement, liabilities by contract, and liabilities by law. You'll also learn which financial statement these liabilities are listed on.
3. Estimated Liabilities: Definition & Types
In this lesson, you'll learn about estimated liabilities. We'll discuss three types of estimated liabilities: retirement, warranties and property taxes. We'll also explore suggestions on how to estimate the amount owed.
4. Contingent Liabilities: Definition & Examples
In this lesson, you'll learn about three types of contingent liabilities: product recalls, pending lawsuits, and changes in legislation. You'll also learn how to account for these types of liabilities on the financial statements.
5. Accounting for Contingencies & Environmental Liabilities
Sometimes in business, things happen that can impact the bottom line of the company. But how do you plan for the financial aspect of these possible events? In this lesson, we'll look at how to account for contingencies and environmental liabilities.
6. Liabilities & Contingencies: Entries, Disclosures & Treatment
In this lesson, we'll discuss liabilities and contingencies. More specifically, we'll go over the journal entries to record them and the disclosure requirements in the financial statements.
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Other chapters within the Accounting 202: Intermediate Accounting II course
- Accounting for Fixed & Intangible Assets
- Accounting for Securities & Investments
- Accounting for Bonds & Notes Payable
- Accounting for Operating & Capital Leases
- Accounting for Shareholder Equity & Comprehensive Income
- Cash Flows & Disclosures
- Accounting for Corporate Income Taxes
- Pensions & Post-Retirement Benefits
- Identifying & Correcting Errors in Accounting
- Studying for Accounting 202