ShmoopTube

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Accounting Allah shmoop contingent liabilities All right people back to

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our lemonade stand It was a lovely time selling sugar

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water at a buck A drink Everything was running Oh

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so fine As we began to build our global empire

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selling eliminate until one day three months later we recognised

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a few of our original clients They all returned with

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the glow in the dark green hair A couple of

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them used about feeling different One of them was able

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to read the backs of poker cards Another had noted

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that his vertical leap in basketball had improved a lot

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When you asked him by how much he said Well

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it used to be three point seven inches Now it's

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thirty seven feet While many appreciated the superpowers that well

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your lemonade gave them other is particularly the women with

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the perpetually growing fingernails were not so appreciative You thought

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to yourself that Well maybe next time you should ask

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why the lemons themselves came at such a discounted price

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from the Chernobyl citrus farms You wonder So you know

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that lawsuits are coming You have no idea how they

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will be adjudicated But you know that you have a

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meaningful contingent liability Now that is your liability or the

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amount there in will be contingent on how the various

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lawsuits go It might be enough to bankrupt you It

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might be nothing You have to make some basic calculations

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that roughly combined the potential total liability and the probability

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of it actually executing It also means that anyone who

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purchased lemonade to take home and subsequently drink will have

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to be notified that you are recalling your product because

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it's defective Well the cost of that product recall gets

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tacked onto the total contingent liability you suffer because you

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still don't know how much that's gonna cost you to

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recall all that product and then replace it with good

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stuff if they want it It's all basically guesswork but

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you have to do it our advice Get a good 00:01:55.56 --> [endTime] lawyer and not this guy

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