A Contingent Liability Is Recorded by Making an Appropriate Journal

question 81

True/False

A contingent liability is recorded by making an appropriate journal entry if the likelihood of a loss is possible.

---

Definitions:

Major Depression

A mental disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Perinatal Onset

Refers to the period involving the time shortly before birth, during, and immediately after birth, when certain conditions, behaviours, or disorders may begin or manifest.

Rapid-Eye-Movement Sleep

A stage of sleep involving rapid movements of the eyes, dreaming, and increased brain activity, playing a crucial role in emotional regulation and memory.

Newborns

Infants in their first few weeks of life, characterized by rapid development and adjustment to the external world outside the womb.