A Contingent Liability Must Be Recognized in the Accounting Records

question 4

Short Answer

A contingent liability must be recognized in the accounting records if it ____________________ and a reasonable estimate of the loss can be made.

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Definitions:

Courage

The ability to overcome fear and live (or die) by one’s convictions, even in ambiguous, uncertain, and dangerous situations; the virtue that underlies and gives reality to all other values; the basis for moral worth and dignity.

Dignity

The inherent worth and respect that every individual deserves, regardless of their status, achievements, or abilities.

Superordinate Quality

Attributes or characteristics that elevate or distinguish something as superior or of higher status compared to others in its category.

Rotary International

An international service organization whose stated purpose is to bring together business and professional leaders to provide humanitarian service and advance goodwill and peace.