A Contingency Was Evaluated at Year-End and Considered to Have

question 172

True/False

A contingency was evaluated at year-end and considered to have a reasonable possibility of becoming an actual liability.If this was not reported on the balance sheet or in the notes to the financial statements,it could be considered a violation of generally accepted accounting principles.

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Definitions:

Norm of Reciprocity

A social norm that expects individuals to help those who have helped them, fostering mutual aid and cooperation.

Empathy Gap

The difficulty in understanding or predicting the feelings and needs of others, especially when there is a difference in emotional state or situation.

Prosocial Behavior

Efforts made to assist others, which involve practices like providing help, distributing, making donations, working together, and engaging in voluntary work.

Identical Twins

Twins who are genetically identical, originating from a single fertilized egg that splits into two, resulting in two individuals who share the same DNA.