If a Contingency Is Remote,the Company Does Not Need to Record

question 143

True/False

If a contingency is remote,the company does not need to record a liability and does not need to disclose it in the notes to the financial statements.

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Definitions:

Limited

Restricted in size, amount, or extent; having boundaries or constraints.

Hierarchical Structure

An organizational framework where members are ranked according to levels of importance or authority, often found in institutions and corporations.

Ethic of Caring

A moral standpoint emphasizing the importance of interpersonal relationships and compassion in ethical decision-making.

Political Power

The ability or capacity to influence or control the behavior of people, institutions, or the course of events through various forms of governance.