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

question 119

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 statement,this could be considered unethical behavior.

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Definitions:

Federal Government

The national government of a federated state, which is responsible for the areas of governance assigned to it by the constitution.

State Governments

The governing bodies of individual states in a federal system, responsible for local law enforcement, education, and other intra-state issues.

Supreme Court

The highest judicial body in a jurisdiction, often having the final say in matters of law and constitutionality.

Equal Protection

A constitutional principle that requires states to govern impartially, not drawing distinctions between individuals solely on differences that are irrelevant to a legitimate governmental objective.