A Contingent Liability Is Recognized When Any Likelihood of Loss

question 103

True/False

A contingent liability is recognized when any likelihood of loss exists and the amount can be reasonably estimated.

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Definitions:

State Board of Nursing

A regulatory body responsible for licensing nurses and setting nursing practice standards within a specific state to ensure quality and competent nursing care.

Medical Malpractice

A legal cause of action occurring when a healthcare professional deviates from standards in their profession, resulting in harm to a patient.

Disciplinary Action

Measures taken by an organization or institution to address and correct undesirable behaviors or violations of policies by its members or employees.

Emergency Medical Treatment and Active Labor Act (EMTALA)

EMTALA is a U.S. federal law that requires hospitals to provide emergency healthcare treatment to anyone needing it regardless of citizenship, legal status, or ability to pay.