A Contingent Liability That Has a Remote Probability of Occurrence

question 76

True/False

A contingent liability that has a remote probability of occurrence must be disclosed in a note to the financial statements.

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Definitions:

Outcomes

The results or effects that stem from certain actions, processes, or behaviors.

Sales-Cost Ratio

A metric used to evaluate the effectiveness of sales efforts by comparing the cost of achieving sales to the amount of sales generated.

Overnight Trips

Short travel or journeys that involve staying away from home for one night, often for business or leisure purposes.

Criterion

A standard, rule, or test by which something can be judged or measured, often used in decision-making or evaluation processes.