Which of the Following Statements Regarding Contingent Liabilities Is True

question 10

Multiple Choice

Which of the following statements regarding contingent liabilities is true?

• A) If they are probable and estimable, then they must be recorded even before the outcome of the future event.
• B) If they are probable and estimable, then they should be disclosed in the notes to the financial statements.
• C) The accounting principle that determines whether a contingent liability is to be recorded is that of historical cost.
• D) Contingencies that are not estimable should not be recorded or disclosed in the financial statements even if they are probable.

Identify and describe the major roles of an applied social psychologist.

Understand the stages and components of the scientific process as applied in social psychology.

Grasp the concepts of theory scope, parsimony, and testability within social psychology.

Identify the roles and functions of theories in explaining human behavior.

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Definitions:

Deadweight Loss

A shortfall in economic optimization that occurs when the balance for a good or service is missed or impossible to hit.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditure.

Consumer Surplus

The difference between the aggregate willingness to pay by consumers for a good or service and the aggregate actual payment.

Deadweight Loss

An economic inefficiency caused by a disruption in market equilibrium, leading to a loss of societal welfare.