Asked by Emily Yannatone on Jun 19, 2024
Verified
A contingent liability may materialize in the future because of something that happened in the past.
Materialize
To become real or actual; in finance, it refers to the realization of expected results, risks, or events in tangible form.
- Understand the attributes and financial reporting approach for provisions and contingent liabilities.
Verified Answer
MC
Maria CodispotiJun 20, 2024
Final Answer :
True
Explanation :
A contingent liability is a potential financial obligation that may arise in the future as a result of past events or transactions, depending on the outcome of a specific event or set of circumstances.
Learning Objectives
- Understand the attributes and financial reporting approach for provisions and contingent liabilities.