Contingent Liabilities Do Not Meet the Criteria for Recognition as Liabilities

question 6

True/False

Contingent liabilities do not meet the criteria for recognition as liabilities.

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Definitions:

FOB

An international commercial term indicating that the seller delivers the goods on board a vessel designated by the buyer.

Abbreviation

A shortened form of a word or phrase used primarily in writing to represent the complete form.

Credit Terms

The agreements between sellers and buyers that stipulate the payment amount and due dates of payments to be made for goods and services.

Invoice Price

The original price of goods or services listed on an invoice, before any discounts or adjustments are applied.