A Certain Contingent Liability Was Evaluated at Year-End; the Company

question 13

True/False

A certain contingent liability was evaluated at year-end; the company felt it was probable that it would become an actual liability, and the amount could be reasonably estimated. If the accountant decided to report it on the balance sheet, this could be considered a violation of generally accepted accounting principles.

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Definitions:

Limited Edition

Refers to a unique or exclusive set of items, often numbered or marked to denote rarity.

Protect

To keep someone or something safe from harm, damage, or injury, often through preventative measures or safeguards.

Patent Act

Legislation that sets out the rules for the granting of patents, their administration, and the protection of patent rights within a jurisdiction.

Original Design

The initial concept or blueprint created for a product, structure, or system.