A Contingency Was Evaluated at Year-End and Considered to Have

question 9

True/False

A contingency was evaluated at year-end and considered to have a remote possibility of becoming an actual liability.If this is not reported on the balance sheet or in the notes to the financial statements,it could be considered a violation of generally accepted accounting principles.

---

Definitions:

Error

The discrepancy between the actual measurement and its real value.

Mean Square

A statistical measure of the average of squared differences from the mean, used in various analyses like variance and ANOVA.

Treatments

In experiments, treatments are the conditions applied to subjects or groups to determine their effect on outcomes of interest.

Mean Square

A statistical measure used in variance and regression analysis, representing the average of the squares of the differences between observed and expected values.