A Contingency Was Evaluated at Year-End

question 114

True/False

A contingency was evaluated at year-end.Management felt it was probable that this would become an actual liability and the amount could be reasonably estimated.If this is reported on the balance sheet,it could be considered a violation of generally accepted accounting principles.

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Definitions:

Concordance For Schizophrenia

The likelihood that schizophrenia will be shared among twins or family members, indicating genetic or familial risk factors.

Identical Twins

Twins who develop from a single fertilized egg, therefore sharing the same genes.

40-50 Percent

A statistical range indicating that between forty to fifty percent of a specified population or quantity falls within a certain criterion or condition.

Diathesis-Stress Model

A psychological theory that explains behavior as a predisposed vulnerability together with stress from life experiences.