Which Statement About Contingencies Is Correct

question 13

Multiple Choice

Which statement about contingencies is correct?

• A)If the future outcome is possible and reliably measurable,a provision is recorded.
• B)If the future outcome is possible,but reliably measurable,no action is required.
• C)If the future outcome is possible,but not reliably measurable,no action is required.
• D)If the future outcome is possible,but reliably measurable,disclosure is required.

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Definitions:

Exchange Rate

The value at which one currency can be exchanged for another, affecting international trade and economics.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Fiscal Policy

Government actions intended to spark or diminish consumption.

Monetary Policy

Manipulations in the interest rates, the banking rules, and the volume of currency in a country, with a goal to spark or diminish consumption.