An Estimated Liability Is Not a Definite Obligation of the Firm

question 81

True/False

An estimated liability is not a definite obligation of the firm because the amount cannot be definitely determined.

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Definitions:

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property that serves as collateral for a loan.

Documents

Written, printed, or electronic records that provide evidence or information.

Considered

Thought about or taken into account when making a decision or judgment.

Perfection

In legal terms, the act of completing all required steps to secure a legal right or interest, making it enforceable against third parties.