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For a Given Contingent Liability, the Company Has the Choice

question 5

True/False

For a given contingent liability, the company has the choice of either recording it on the balance sheet or disclosing it in the notes.


Definitions:

Simplest Formula

A type of chemical formula that gives the smallest whole-number ratio of the component atoms. Compare with molecular formula and structural formula.

Chemical Reaction

A process that leads to the chemical transformation of one set of chemical substances to another.

Ionic Bond

The chemical attraction between a cation and an anion.

Equilibrium

See dynamic equilibrium, genetic equilibrium, and punctuated equilibrium.

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