A Contingent Liability Is a Potential Obligation That Depends on a Future

question 204

True/False

A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.

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Definitions:

Revenue

The sum of money a business earns from selling products or offering services over a specified time frame.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, reflective of the capital owned by the owners or shareholders.

Personal Expenses

Out-of-pocket expenses related to the individual needs of a person rather than business expenses.

Operations

Activities and tasks involved in the day-to-day running of a business or system, focusing on producing and delivering products or services.