The Full Disclosure Principle Requires the Reporting of Contingent Liabilities

question 168

True/False

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

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Definitions:

Cash Dividend

A financial disbursement by a corporation to its stockholders, often as part of the company's profit sharing.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the number of outstanding shares.

Common Stock

Equity ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Stock Split

A measure taken by a company to split its current shares into numerous ones, aiming to increase the shares' liquidity.