39) Define a contingent liability. Discuss the CICA Handbook's guidelines on reporting contingencies. Give an example of a contingent liability and indicate how it should be reported.
40) Answer the following questions briefly and concisely.
a)Why is it important for a company to separate the current portion of long-term debt from the long-term debt?
b)How would the under accrual of warranty expense affect a company's financial statements?
c)What is the difference between a liability and a contingent liability?
d)What are contingent gains and how are they treated?