Chapter 4
Current Liabilities
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AS-25 (
8
)
Define “estimated liabilities” and give two examples of them.
AS-26 (
8
)
Because it is impossible to predict with 100% certainty the amount of money that a company
will have to spend repairing warrantied products, should warranty expense be recorded only
when the products are returned for repair? Explain.
AS-27 (
8
)
Define “contingent liabilities” and give an example of one.
