A Contingent Liability Is Recorded Only If a Loss Is

question 126

True/False

A contingent liability is recorded only if a loss is at least reasonably possible and the amount is reasonably estimable.A contingent liability is recorded only if a loss is probable and the amount is reasonably estimable.

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Definitions:

Concrete

A construction material composed of cement, water, aggregates, and sometimes admixtures, used for building a wide variety of structures.

Prevailing Torque

A term used to describe the resistance to loosening provided by some type of fasteners, often achieved through friction or deformation.

Nylon Lock

A type of lock nut that uses a nylon insert to prevent loosening under vibration and torque.

Thread Pitch

The distance between threads on a screw or bolt, indicating the tightness or coarseness of the thread.