A Contingent Liability That Has a Remote Possibility of Becoming

question 136

True/False

A contingent liability that has a remote possibility of becoming an actual loss is included in a note to the financial statements.

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Definitions:

Net Adjustment

Modifications made to the net income or net loss of a company to reconcile with cash flow or other financial statements.

Unamortized Patent

The cost of a patent that has not yet been gradually written off against profits over its useful life.

Equity Income

Income earned by an investor through dividends or distributions from equity investments or ownership interests in companies.