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.

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Definitions:

Assault

An act that intentionally puts another person in reasonable apprehension of imminent harmful or offensive contact.

Self-Defense

A legal justification for the use of force to protect oneself or another from immediate harm.

Assault

An intentional act by one person that creates an apprehension in another of an imminent harmful or offensive contact.

Battery

A tort law term referring to the unauthorized and offensive or harmful physical contact with another person.