A Contingent Liability Is Recorded by Making an Appropriate Journal

question 87

True/False

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

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Definitions:

Diabetic Retinopathy

A diabetes complication that affects eyes, caused by damage to the blood vessels of the retina, leading to vision impairment.

Pathology

Pathology is the medical science that studies the causes and effects of diseases, especially the structural and functional changes in tissues and organs of the body caused by disease.

Organ of Corti

A structure located in the cochlea of the inner ear that contains hair cells responsible for converting sound vibrations into electrical signals for the brain to interpret as sound.

Cochlea

The snail-shaped portion of the inner ear.