If a Liability Is Dependent on a Future Event, It

question 88

Multiple Choice

If a liability is dependent on a future event, it is called a

• A) potential loss.
• B) hypothetical loss.
• C) probabilistic loss.
• D) contingent loss.

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Definitions:

Trial Balance

A report that lists all the balances of the general ledger accounts to check the correctness of bookkeeping entries.

Entry Posted

The action of recording an accounting entry in the ledger, which finalizes the transaction and makes it part of the financial records.

Debit

A bookkeeping record that causes assets to go up or liabilities to go down on a firm's balance sheet.

Equipment

denotes tangible assets used in operations, such as machinery or office equipment, which have a useful life beyond one accounting period.