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Establishment of a contingent liability impact earnings

Question 1. What is an example of a situation that requires the establishment of a contingent liability? Why should a company establish a contingent liability? How does the establishment of a contingent liability impact earnings?

Question 2. What is an example of a potentially unethical accounting situation? Why is the situation unethical? How do ethics impact the financial results of a company?

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Finance Basics: Establishment of a contingent liability impact earnings

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Finance Basics: Establishment of a contingent liability impact earnings

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