Does the Amount of an Obligation Need to Be Known

question 82

Essay

Does the amount of an obligation need to be known in order for a liability to exist? Explain.

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Definitions:

Cash Sales

are transactions where payment is made in cash immediately upon the sale of goods or services.

NCI

Non-Controlling Interest; a minority stake in a subsidiary that is not owned or controlled by the parent corporation.

Ownership Interest

The right or stake that an individual or entity has in an asset, often implying a share of the asset's profits or losses.

Subsidiary

A company controlled by another company, often referred to as the parent company, through ownership of a majority of its voting stock.