A Contingency Was Evaluated at Year-End

question 114

True/False

A contingency was evaluated at year-end.Management felt it was probable that this would become an actual liability and the amount could be reasonably estimated.If this is reported on the balance sheet,it could be considered a violation of generally accepted accounting principles.

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Definitions:

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object; can be kinetic, potential, thermal, electrical, chemical, nuclear, or other various forms.

Information

Data that is processed and organized in a way that it can be used to enhance understanding and decision-making.

Ecological Term

In social work, it pertains to an approach that considers individuals within the context of their environment and the complex interactions between them.

Dynamic Interactions

Interactions characterized by continuous change, activity, or progress within a group or system, affecting each other's behaviors and attitudes.