A Contingent Liability Is Disclosed in a Note to the Financial

question 78

True/False

A contingent liability is disclosed in a note to the financial statements when the liability is reasonably possible and can be estimated.

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Definitions:

Interest Earned

Interest earned is the amount of money gained as interest from savings accounts, investments, or bonds over a certain period.

Annual Rate

the interest rate for a whole year, rather than just a shorter period.

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or since the last interest payment, if there has been one.

Daily Balance

A method of calculating interest where the amount owed or due is recalculated each day, based on the balance of the account at the end of each day.