Young company is involved in a lawsuit. when would the lawsuit be recorded as a liability on the balance sheet?

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07-09-2022
Business

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Young company is involved in a lawsuit. when would the lawsuit be recorded as a liability on the balance sheet?

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-09-19T01:02:17-04:00

When the loss probability is remote and the amount can be reasonably estimated. The balance sheet is one of three key financial statements used to analyze a company. It gives a snapshot of a company's finances (what it owns and owes) as of the date of publishing.

A balance sheet is a snapshot of your company's financial status at a specific point in time. A balance sheet, along with an income statement and a cash flow statement, can help business owners evaluate their company's financial status. The term "balance sheet" refers to the fact that assets always equal liabilities and shareholders' equity.

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