There Are Times When Contingent Liabilities Are Never Recorded

question 31

True/False

There are times when contingent liabilities are never recorded.

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Definitions:

Internal Control

The processes and procedures implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and promote compliance with laws and regulations.

Vulnerabilities Analysis

A process of identifying, quantifying, and prioritizing (or ranking) the vulnerabilities in a system, such as in information technology systems or energy supply systems.

Petty Cash

Petty cash refers to a small amount of cash on hand used for paying minor expenses in an organization to avoid writing checks for small amounts.

Journal Entry

is a record in accounting that represents the recording of a financial transaction, comprising debit and credit entries.