Which Statement Is Correct About Provisions,contingent Assets and Contingent Liabilities

question 82

Multiple Choice

Which statement is correct about provisions,contingent assets and contingent liabilities?

• A)Provisions are recorded in the financial statements whereas contingent assets are not recorded.
• B)Provisions are recorded in the financial statements whereas contingent liabilities are not recorded.
• C)Probable contingent liabilities are recorded at management's best estimates.
• D)Probable contingent assets are recorded at management's best estimates.

Calculate total operating expenses.

Understand the impact of inventory transactions on the accounting equation.

Record transactions related to purchases and sales, utilizing the gross method for sales discounts.

Understand the concepts of asset turnover ratio and the accounting for sales discounts.

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