A Contingent Liability Is Generally Disclosed in the Notes to the Financial

question 107

True/False

A contingent liability is generally disclosed in the notes to the financial statements.

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Definitions:

Flexibility

The ability of a company or system to adapt to changes or new requirements.

Accounting Information

Financial data and records about an organization's transactions, used for reporting, analysis, and decision-making purposes.

Consistency

In accounting, the principle that requires the same accounting methods to be used from period to period for comparability.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data.