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.

---

Definitions:

Full-scale War

Full-scale war involves extensive military engagement between nations or large groups, utilizing the full capacity of available weapons and resources.

Union

An organization formed by workers in various sectors to protect and advance their rights, wages, and working conditions.

Closed Shop

A workplace where only members of a particular union are hired and where being a member of the union is a condition for employment.

Agency Shop

is a workplace where employees are not required to join the union, but must still pay union dues as the union negotiates on behalf of all employees.