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

question 152

True/False

A certain contingent liability was evaluated at year-end, and considered to have a remote 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:

Behavior Modification

The application of reinforcement or punishment techniques to change a person's behavior.

Components

The distinct parts or elements that make up a larger system or complex structure.

Self-Fulfilling Prophecy

A phenomenon where an individual's expectations or predictions inadvertently lead to behaviors that cause the expectation to come true.

Investment Analysts

Professionals who evaluate financial data, economic trends, and investment opportunities to provide recommendations.