A Contingent Liability Is a Potential Obligation That Depends on a Future

question 146

True/False

A contingent liability is a potential obligation that depends on a future event arising from a future transaction or event.

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Definitions:

Negative External Financing

A situation where a company is reducing its external borrowing and financing activities, possibly indicating a shift towards internal funding methods.

External Financing Need

The amount of funding a firm requires from external sources to finance its planned investment or business activities beyond what is generated internally.

Four Factors

Essential elements or aspects considered crucial in evaluating or determining a specific outcome, although the specific factors may vary based on context.

Higher Rate Growth

An increased pace at which a particular economic variable, typically revenue or GDP, expands over time.