If a Company Is Located in an Area Where Floods

question 66

True/False

If a company is located in an area where floods or earthquakes are deemed to be possible,the company should record a contingent liability.

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Definitions:

Stocks or Bonds

Financial instruments that represent equity ownership in a company (stocks) or a fixed income security issued by corporations or governments (bonds).

Flotation Cost

The costs incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.

Securities Issued

Financial instruments such as stocks, bonds, or options that have been offered for sale by a corporation or government entity.

Fund Project

The act of providing financial resources, typically in the form of money, or other values such as effort or time, to finance a project.