Contingent Assets Are Disclosed When an Inflow of Economic Benefits

question 82

True/False

Contingent assets are disclosed when an inflow of economic benefits is considered more likely than not to occur.

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Definitions:

Face Value

The original value or principal amount of a security as stated by the issuer.

Weighted Average Cost

A method of calculating the average cost of inventory or cost of goods sold by weighting each item by its relevance or quantity.

Cost of Equity

The yield a business seeks to determine whether an investment fulfills its requirements for capital returns, frequently calculated through methods such as the Capital Asset Pricing Model (CAPM).

Face Value

The nominal value of a security stated by the issuer.