A Contingent Liability That Will Probably Become an Actual Liability,and

question 1

True/False

A contingent liability that will probably become an actual liability,and can be reasonably estimated,must be recorded as an expense.

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Definitions:

Cumulative Gain

The total amount of profit gained over a period of time from an investment or series of investments.

Semi-Annual Dividend

A payment made to shareholders that is distributed twice a year from a company's earnings.

Total Return

The overall gain or loss on an investment over a specified time period, including interest, dividends, and capital gains.

Capital Gain Yield

The rate of return on an investment based on the increase in its market value over the original purchase price, excluding dividends or interest.