A Contingent Liability Should Be Disclosed in the Notes to the Financial

question 85

True/False

A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense)will occur.

---

Definitions:

Infinitive Phrase

A grammatical term referring to a phrase that begins with an infinitive verb, which can function as a noun, adjective, or adverb in a sentence.

Objective Approach

A method of decision-making or analysis based on factual and unbiased evidence.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Unrepresentative Data

Data that does not accurately reflect the whole or relevant population, leading to biased conclusions.