With Regard to Reporting of Contingent Liabilities,U

question 3

Multiple Choice

With regard to reporting of contingent liabilities,U.S.GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable".Which of the following is correct with regard to defining "probable"?

• A)Under U.S.GAAP,"probable" means an event is more likely than not to occur.
• B)Under IFRS,"probable" means the chance of an event occurring is slight.
• C)Under IFRS,"probable" means an event is more likely than not to occur.
• D)Under U.S.GAAP,"probable" means the chance of an event occurring is slight but less than likely.

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Definitions:

Majority Rule Voting

A voting system in which each member has one vote, and decisions are made by a majority of the votes cast, typically more than half.

Rent-Seeking

The practice of gaining economic benefits through manipulation or exploitation of the political environment rather than through traditional economic competition.

Antitrust Exemption

Legal provisions that allow certain industries or companies to avoid full compliance with antitrust laws, often justified by arguments of national interest or market efficiency.

Voting Paradox

A situation in collective decision-making where individual preferences do not result in a consistent collective order of preferences, showing the complexity of social choice.