A Contingent Liability That Has a Probable Chance of Occurrence

question 165

True/False

A contingent liability that has a probable chance of occurrence should be recorded in the financial statements.

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Definitions:

Political Corruption

The unlawful misdirection of governmental resources or actions that occurs when government officials abuse their entrusted powers for personal gain.

Governmental Resources

Assets, both financial and material, that are owned or controlled by the government.

Bureaucratic Inefficiency

The occurrence of delays, excessive costs, or lack of responsiveness within an organization or government, often due to complex procedures and red tape.

Disaster Relief

Assistance and resources provided to individuals, communities, and countries in the event of natural or human-made disasters to facilitate recovery.