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

question 69

True/False

A contingent liability is a potential liability that depends on a future event arising out of a past transaction.

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Definitions:

High-risk Projects

High-risk projects are those that come with a greater uncertainty regarding outcomes, potentially offering higher returns alongside increased potential for loss.

Low-risk Proposals

Refers to proposals or projects with a minimal chance of failure or loss, often associated with stable returns.

Forecasting Techniques

Methods or processes used in attempting to predict future events or trends, based on historical data and analysis.

Cash Flows

The inflows and outflows of cash for a business, indicating the company's operational health and its ability to generate profits.