In Order to Be a Recorded Contingent Liability, the Liability

question 88

True/False

In order to be a recorded contingent liability, the liability must be possible and easily estimated.

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Definitions:

Credit Sales

Sales made on credit, where the payment is received after the delivery of the goods or services.

Cash Dividends

Cash dividends are payments made by a company out of its profits to shareholders, distributed in cash, representing a share of the corporation's earnings.

Financing Section

Part of a cash flow statement that shows cash inflows and outflows related to debt, equity, and other financing activities.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, financing, and investing activities.