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:

Net Capital Outflow

The difference between a nation's savings and its investment, representing the amount of domestic capital invested abroad minus the foreign capital invested domestically.

Pound Sterlings

The official currency of the United Kingdom, commonly known as the pound and denoted by GBP, which is one of the world's major currencies.

Bonds

Debt securities issued by entities such as governments or corporations to finance projects or operations, with the promise to repay the principal along with interest.

Open Economy

An economy that engages in international exchange of goods, services, and capital by allowing cross-border trade and investment.