A Gain Contingency Will Usually Not Be Recorded in the Accounts

question 60

True/False

A gain contingency will usually not be recorded in the accounts and reported in the financial statements even though its occurrence is probable.

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Definitions:

Voucher System

A set of procedures that uses vouchers for authorizing and recording liabilities and cash payments.

Internal Control

A process implemented by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets, and transmit management policies throughout the organization.

Cash Payments

Transactions that involve the immediate outflow of cash to settle obligations or purchase goods and services.

Internal Control System

Procedures and processes implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.