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A Contingency Was Evaluated at Year-End and Considered to Have

question 172

True/False

A contingency was evaluated at year-end and considered to have a reasonable possibility of becoming an actual liability.If this was not reported on the balance sheet or in the notes to the financial statements,it could be considered a violation of generally accepted accounting principles.

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Definitions:

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person.

Competitive

Characterized by a desire to win or be more successful than others, often involving rivalry and a drive to excel or achieve superiority.

One-way Assistance

A type of help or support that flows from one party to another without expectation of reciprocation or exchange.

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