How Should a Contingent Liability That Is Reasonably Possible but Cannot

question 58

Multiple Choice

How should a contingent liability that is reasonably possible but cannot reasonably be estimated be reported within the financial statements?

• A)It must be recorded and reported as a liability.
• B)It does not need to be recorded as a liability nor disclosed in a note.
• C)It must only be disclosed as a note to the financial statements.
• D)It must be reported as a liability,but not disclosed in a note.

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Definitions:

Segment of DNA

A specific sequence or region of DNA that contains genetic information or codes for specific proteins.

Body Trait

A physical or physiological characteristic that is genetically determined.

Anatomical Position

When the body is standing upright and facing forward with the arms at the side and the palms of the hands facing forward.

Midline of Body

An imaginary line that divides the body into equal right and left halves, often used as a reference point in medical and fitness contexts.