An Event That Gives Rise to a Present Obligation, but Which

question 27

Multiple Choice

An event that gives rise to a present obligation, but which cannot be measured with sufficient reliability is an example of a:

• A) accrual.
• B) provision.
• C) liability.
• D) contingent liability.

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Definitions:

Organic Company

A business that is flexible, adaptive, and informal in its structure and operations, often contrasted with more bureaucratic, traditional firms.

Barriers

Obstacles that impede progress or achievement.

Managers

Individuals responsible for planning, leading, organizing, and controlling an organization's resources to achieve specific goals.

Employee

A person employed for wages or salary, especially at non-executive level.