Contingent Liabilities Must Be Recorded If

question 8

Multiple Choice

Contingent liabilities must be recorded if:

• A)the future event is reasonably possible.
• B)the amount owed cannot be reasonably estimated.
• C)the future event is probable and the amount owed can be reasonably estimated.
• D)the future event is remote.

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Definitions:

Cyanobacteria

Photosynthetic, aquatic microorganisms, also known as blue-green algae, that can produce oxygen during photosynthesis and contribute to the formation of stromatolites.

Lichens

Symbiotic organisms composed of fungi and algae or cyanobacteria, where the fungi provide structure and the algae or bacteria provide photosynthesis.

Toxic Blooms

Rapid growth of algae that produce harmful toxins, affecting water quality and marine life, and can pose risks to humans.

Herpesvirus

A large family of viruses that cause diseases in animals, including humans, characterized by latent and recurrent infections.