A Contingent Liability Is Recorded If It Is Probable and Can

question 145

True/False

A contingent liability is recorded if it is probable and can be reasonably estimated.

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Definitions:

Finished Goods Inventory

The inventory of goods that are completed and ready for sale.

Goods Available

The total inventory that a company has ready for sale at the beginning of an accounting period, including both produced and acquired goods.

Raw Materials

Basic materials used in the production process to create goods and services.

T-account

A visual representation of a general ledger account, showing debit and credit transactions and the resulting balance.