Wrongful Call insurance is intended to protect the exporter if an importer customer decides that the exporter, in their opinion, does not meet the terms of an agreement, and inappropriately call on the letter of guarantee without any proof or corroboration. True or False?

Wrongful Call insurance is intended to protect the exporter if an importer customer decides that the exporter, in their opinion, does not meet the terms of an agreement, and inappropriately call on the letter of guarantee without any proof or corroboration. True or False?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 11CYBK

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

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