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Define Propinquity Theory

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Define propinquity theory.


Definitions:

Reasonably Possible

A term used in accounting to describe a condition that could occur, affecting financial decisions or disclosures, based on current knowledge and events.

Note Disclosure

Additional information provided in a company's financial statements, explaining the numbers presented in the statements for clarity and completeness.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a certain event.

Financial Statements

A set of formal documents tracking the financial activities, status, and cash flows of a business, providing insight into its financial health over a specified period.

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