Only Contingencies That Are Probable and Can Be Estimated Are

question 61

True/False

Only contingencies that are probable and can be estimated are recorded as a liability and an accrued expense.

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Definitions:

Production Equipment

The machinery and tools used in the production process to manufacture products.

Cost Of Goods Sold

The expenses directly linked to the creation of products a company sells, including both materials and labor costs.

Period Costs

Expenses that are not directly tied to the production of goods or services and are instead expensed in the period they are incurred, such as selling, general, and administrative expenses.

Selling Expenses

Costs incurred directly related to the selling of products or services, including advertising, sales commissions, and store maintenance.