A Contingent Liability That Has a Remote Possibility of Becoming

question 136

True/False

A contingent liability that has a remote possibility of becoming an actual loss is included in a note to the financial statements.

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Definitions:

Tax-deferred Retirement Plans

Savings plans that allow individuals to postpone paying taxes on income invested until it is withdrawn, typically during retirement.

Distributions

Payments made from a fund or account, usually referring to dividends, interest, or withdrawals.

Beneficiaries

Individuals or entities designated to receive assets from an estate, trust, account, or insurance policy upon the owner's death.

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.