Accounting and Tax Services in Richmond, VA .

As a business owner, you may have an adverse outcome in a tax court decision that will have an impact on your business. This event is known as a contingent liability. A contingent liability is a potential liability that may exist in the future depending on the outcome of a past event. Other examples include a lawsuit or notes receivable discounted. The accounting rule, if this event is probable, is that you will record the liability on the balance sheet and record the los