A Contingent Liability Is a Potential Obligation That Depends on a Future

question 204

True/False

A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.

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Definitions:

Birth Defects

Are significant abnormalities of structure, function, or body metabolism present at birth that lead to physical or mental disabilities or are fatal.

Sudden Infant Death Syndrome

An unexplained fatal condition affecting infants typically during sleep, with unknown cause despite thorough investigation.

Social Maladjustment

Difficulty in adapting to societal norms and expectations, which can manifest in a variety of behaviors and can impact personal and social functioning.

Face and Limb Malformations

Developmental abnormalities affecting the structure and appearance of the face and limbs, which can be congenital or arise from different factors.