Every Contingent Liability Must Be Recorded

question 31

True/False

Every contingent liability must be recorded.

---

Definitions:

Monte Carlo Simulation

A computational technique that uses random sampling and statistical modeling to estimate mathematical functions and simulate the behavior of complex systems.

Cumulative Probability

The probability of an event occurring up to a certain point in time or over a range of values, often visualized through a cumulative distribution function.

Monthly Sales

The total volume or dollar value of all sales transactions made by a business within a month, used as an indicator of business performance and market demand.

Probability

The likelihood or chance of a specific outcome occurring, usually expressed as a ratio or percentage.