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A Lawsuit Has Been Filed but Not Yet Resolved Against

question 7

True/False

A lawsuit has been filed but not yet resolved against an audit client. This lawsuit does not meet the conditions required for a contingent liability.


Definitions:

Legal Contracts

Binding agreements between two or more parties that are enforceable by law.

Record Date

The specific date set by a company to determine the shareholders eligible to receive dividends or other distributions.

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