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.

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Definitions:

Finance Manager

A professional responsible for managing the financial health of an organization, including planning, organizing, controlling, and monitoring financial resources.

Borrower

An individual or organization that takes something, especially money, from another with the intention of returning it or its equivalent.

Angel Investor

An individual who provides capital to start-up companies in exchange for ownership equity or convertible debt.

Divestiture

The process of a company selling off or liquidating a portion of its business or assets, often for strategic, legal, or financial reasons.