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Contingent Liabilities Are Only Recognized If They Arise from Past

question 28

True/False

Contingent liabilities are only recognized if they arise from past events.


Definitions:

Confining Pressure

The pressure applied equally in all directions at any given point within the earth’s crust, often affecting rock properties.

Compression

is the application of force that presses matter together, reducing its volume or causing deformation.

Tension

A force that pulls materials apart, causing stress or strain in geological contexts, such as the stretching of the Earth's crust.

Shear

A strain in materials characterized by slippage along parallel planes, often related to faults and shear zones in geology.

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