Contingencies Are Disclosed in a Note If It Is Probable

question 37

True/False

Contingencies are disclosed in a note if it is probable that cash of other assets will be required to settle the obligation, or if the amount of the obligation cannot be measured with sufficient reliability.

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Definitions:

Uniform Commercial Code

A standardized set of laws and regulations that govern commercial transactions in the United States.

United Nations Convention

An international treaty or agreement formulated under the auspices of the United Nations, aimed at regulating issues of global concern.

Case Law

The collection of legal interpretations made by judges. They are considered to be law unless otherwise revoked by a statutory law. Also known as common law.

Quasi-contract

An obligation imposed by law to prevent unjust enrichment, where there is no actual contract between the parties.