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:

Heart-Lung Machines

Medical devices that temporarily take over the functions of the heart and lungs during cardiac surgery.

Blood Transfusion

The medical process of receiving blood or blood products into one’s circulation intravenously, commonly used to replace lost components of the blood.

Band-Aids

Adhesive bandages used to cover small wounds, providing protection and aiding the healing process.

Long-Term Paid Leaves

Employment benefits that allow workers to take an extended period off work while still receiving pay, often used for health-related reasons.