The Journal Entry to Record a Contingent Liability Requires a Debit

question 21

True/False

The journal entry to record a contingent liability requires a debit to a loss (or expense)account and a credit to a liability.

---

Definitions:

Complementary Resource

A good or service that enhances the use or value of another good or service when the two are used together.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in a given timeframe.

Wage Rate

The price of labor per unit of time, typically expressed as an amount of money paid per hour or year.

Efficient Method

An approach or technique that achieves a desired outcome with the least amount of waste, effort, or expense.