The Journal Entry to Record a Contingent Liability Requires a Debit

question 84

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.

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Definitions:

Income Ratios

Financial ratios that measure a company's ability to generate profit from its operations, commonly used in analyzing financial health and operational efficiency.

Retirement

The act of leaving one's job or profession and ceasing to work, typically after reaching a certain age or financial milestone.

Capital Account

In finance, it represents an individual's or entity's financial net worth or in international economics, it is part of a country's balance of payments.

Income Ratios

Financial metrics that compare various aspects of a company’s income to its sales, assets, or equity, to assess financial performance.