A Certain Contingent Liability Was Evaluated at Year-End, and Considered

question 67

True/False

A certain contingent liability was evaluated at year-end, and considered to have a reasonable possibility of becoming an actual liability. If the accountant decided not to report it on the balance sheet or in the notes to the financial statements, this could be considered a violation of generally accepted accounting principles.

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Definitions:

Post-Translational

Refers to the changes a protein may undergo after translation, including folding, cutting, and addition of chemical groups, which are crucial for its final function.

Knockout

An experiment in which a gene is deliberately inactivated in a living organism; also, an organism that carries a knocked-out gene.

Inactivate

To render something inactive or no longer in effect, often used in contexts such as deactivating enzymes, genes, or pharmaceuticals.

Experiments

Controlled procedures carried out to investigate the effect of a variable by providing precise data and observations.