Net Income, or Profit, Is the Bottom-Line Measure of What's

question 75

True/False

Net income, or profit, is the bottom-line measure of what's left from the firm's net sales after operating expenses, financing costs, and taxes have been deducted.

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Definitions:

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event, which are recorded in the financial statements if the occurrence is likely and the amount can be reasonably estimated.

Potential Obligation

This term refers to a possible future liability that might arise as a result of past events or transactions, dependent on certain occurrences.