Angus Ltd Has Provided a Bank Guarantee to a Bank

question 20

Multiple Choice

Angus Ltd has provided a bank guarantee to a bank in relation to a loan provided to Brown Ltd. Brown Ltd is solvent and shows no signs of defaulting on the loan. The treatment of the bank guarantee in the records of Angus Ltd is to:

• A) do nothing.
• B) recognise a contingent liability.
• C) recognise a liability.
• D) recognise a provision.

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Definitions:

Unconscious Conflicts

Internal struggles, often stemming from childhood, that operate outside of an individual's conscious awareness, influencing behaviors and emotions.

Identical Twins

Twins that originate from a single fertilized egg, sharing the same genetic material and typically very similar in appearance.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character, influencing their patterns of thought, feelings, and behavior.

Situational Influences

External factors or circumstances that affect an individual's behavior, decisions, or feelings.