If the Amount of a Liability Cannot Be Exactly Determined,it

question 2

True/False

If the amount of a liability cannot be exactly determined,it should not be recorded.

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Definitions:

Defined Contribution Plans

A type of retirement plan in which the employer, employee, or both make contributions to an individual's retirement account, with future benefits depending on the investment's performance.

401k Plan

A retirement savings plan sponsored by an employer that allows employees to save and invest a piece of their paycheck before taxes are taken out.

Vacation Pay Expense

Represents the cost to an employer for employees' earned but not yet taken vacation time, recognized as a liability.

Operations Year

The 12-month period used by businesses to measure financial and operational performance, often aligning with the fiscal year but not necessarily the calendar year.