Contingent Liabilities Are Recorded in the Accounts If the Future

question 82

Short Answer

Contingent liabilities are recorded in the accounts if the future event is ________ and the amount owed can be ________.

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Definitions:

Pro Forma Statements

are financial reports that companies use to project future financial performance based on past and current financial conditions.

Asset Structure

The composition of a company's fixed assets and current assets, which shows how the company's resources are invested in different types of assets.

Financial Plan

A detailed strategy outlining an individual's or organization's financial goals and the means and timeline for achieving them.

Pro Forma Sales Forecasts

Pro forma sales forecasts are projected financial statements showing expected sales revenue, often used for planning and investment assessment.