We Record a Contingent Liability When the Likelihood of the Loss

question 107

True/False

We record a contingent liability when the likelihood of the loss occurring is reasonably possible and the amount can be reasonably estimated.

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Definitions:

Realistic

Pertaining to the accurate representation of the real world.

Timebound

Characterized by a specific duration or deadline within which a task or project must be completed.

Management by Objectives

A management strategy focusing on defining specific objectives that employees need to achieve within a set timeframe, followed by feedback on their performance.

Performance Appraisal

A systematic evaluation of an employee's job performance and productivity.