A Contingent Liability Is a Liability That May Materialize in the Future

question 9

True/False

A contingent liability is a liability that may materialize in the future because of something that happened in the past.

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Definitions:

Liter

A metric unit of volume equal to one cubic decimeter, commonly used to measure liquids and other volumes in the scientific and commercial worlds.

Snowmelt

The process of snow and ice melting, often contributing to river flow in many parts of the world, and can lead to flooding if rapid.

Groundwater

Water that collects or flows beneath the Earth's surface, filling the porous spaces in soil, sediment, and rock formations.

Precipitation

Any form of water, liquid or solid (rain, sleet, snow, or hail), that falls from the atmosphere and reaches the ground.