A Contingency Is an Event or Transaction That Will Occur

question 117

True/False

A contingency is an event or transaction that will occur only if some other uncertain event happens.

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Definitions:

Break-even Point

The point at which total costs equal total revenue, meaning that a business is neither making a profit nor incurring a loss.

Net Loss

The amount by which expenses exceed revenues over a specific period, indicating a negative financial performance.

Break-even Point

The financial stage at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production.