Which Statement Is Correct

question 16

Multiple Choice

Which statement is correct?

• A)Contingencies arise from future events.
• B)The amount to be paid for contingencies is known or reasonably estimable.
• C)Current liabilities arise from future events.
• D)The amount to be paid for current liabilities is known or reasonably estimable.

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Definitions:

Reasonable Belief

A conclusion or perspective that a person can logically or justifiably hold, based on the information available to them at the time.

Actual Damage

Real, specific harm or loss suffered by an individual or entity, as opposed to hypothetical or potential harm.

Defamation Suits

Legal actions brought for damage to reputation caused by false statements, either spoken (slander) or written (libel).

Discharged Employees

Workers who have been terminated from their job for various reasons, which can include layoffs, misconduct, or the completion of a contract.