If the Likelihood of a Loss Is Reasonably Possible Rather

question 15

True/False

If the likelihood of a loss is reasonably possible rather than probable,we record no entry,but make full disclosure in a footnote to the financial statements to describe the contingency.

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Definitions:

Intangible Assets

Non-physical assets owned by a business, such as patents, trademarks, goodwill, and copyrights, that have economic value and can provide future benefits.

Amortized

The gradual reduction of a debt or the spreading of capital expenses over a period of time.

Research and Development Costs

Expenses associated with the research and development of a company's goods or services, aiming to improve and innovate.