If a Company Determines That the Likelihood of a Future

question 80

True/False

If a company determines that the likelihood of a future obligation arising from a contingent liability is possible, the company must record a liability on its balance sheet.

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Definitions:

Spread

A statistical term describing the range or distribution of data points in a data set.

Dispersion

A statistical term referring to the spread of data points around a central measure, such as mean or median.

Unbiased Estimate

A conservative estimate of a population parameter.

Standard Deviation

A measure of the dispersion or variability of a set of data points, indicating how spread out the data are from their mean.