Discuss the Difference Between Business Events That Are Transactions and Those

question 14

Essay

Discuss the difference between business events that are transactions and those that are not.Why is the distinction important?

---

Definitions:

Not Estimable

A term indicating that something cannot have its value, size, or amount accurately determined or calculated.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the occurrence or non-occurrence of one or more uncertain events.

Probable

A term often used in accounting and finance to describe an event or action that is likely to occur based on current evidence.

Not Estimable

describes a condition where the value or quantity of something cannot be accurately predicted or determined.