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.

Grasp the impact of utility on demand curves and market behavior.

Analyze the effect of consumer satisfaction on purchasing decisions.

Understand the concept of profit sharing and its effectiveness in different economic conditions.

Recognize various job design concepts including job breadth, depth, and enrichment.

---

Definitions:

Maturity

The date on which a financial instrument or obligation becomes due and is to be paid or settled.

Face Value

The nominal value printed on a bond or stock certificate, representing its legal value.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for an asset over its useful life.

Amortization

The process of spreading the cost of an intangible asset over its useful life or paying off a loan in regular installments over a period.