Contingent Liabilities Are Not Reported in the Financial Statements but May

question 79

True/False

Contingent liabilities are not reported in the financial statements but may be disclosed in the notes to the financial statements if the likelihood of an unfavorable outcome is possible.

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Definitions:

Memorize

The process of committing something to memory or learning it so that it can be recalled later without any external aid.

Professor

An academic title given to a senior teacher or researcher, typically at a college or university.

Acronym

A word created from the initial letters of a phrase, making it easier to recall or say, such as NASA from National Aeronautics and Space Administration.

Chunking

A process of grouping information into larger units to improve memory and learning.