Normally, General Risk Contingencies Need Not Be Disclosed in the Financial

question 4

True/False

Normally, general risk contingencies need not be disclosed in the financial statements.

---

Definitions:

Liquidation Bankruptcy

A type of bankruptcy proceedings where a debtor's assets are sold off to pay creditors, primarily under Chapter 7 of the Bankruptcy Code.

Bank

A bank is a financial institution licensed to receive deposits, offer loans, and provide other financial services, like wealth management.

Straight Bankruptcy

Another term for Chapter 7 bankruptcy, where the debtor's non-exempt assets are sold to pay off unsecured debts.

Petition

A formal written request to a court requesting a specific legal action.