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

question 67

Multiple Choice

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

• A)The same probability threshold is used to record contingent liabilities and provisions.
• B)The same probability threshold is used to record contingent assets and contingent liabilities.
• C)Possible contingent liabilities are recorded.
• D)Virtually certain contingent assets are recorded.

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Definitions:

Economic Problems

Issues arising from the allocation of scarce resources among competing uses, leading to questions of what, how, and for whom to produce.

Velocity of Money

The rate at which money circulates or turns over in an economy in a given period of time, used as an indicator of economic activity.

Transactions Demand

The demand for money as a medium of exchange, reflecting the need for cash or liquid assets to carry out daily transactions.

Asset Demand

Holding money as a store of value instead of other assets such as stocks, bonds, savings accounts, certificates of deposit, or gold.