A Contingent Loss Should Be Disclosed in a Note to the Financial

question 64

Multiple Choice

A contingent loss should be disclosed in a note to the financial statements but should not be recorded as a liability if the

• A) possibility of loss is remote.
• B) contingency involves pending or threatened litigation.
• C) outcome is uncertain.
• D) actual incurrence of a loss is reasonably possible.

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Definitions:

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Correctional Facilities

Institutions designed for the detention and rehabilitation of individuals who have been convicted of crimes.

Central Norms

Central norms refer to the fundamental standards, behaviors, or beliefs that are widely accepted and upheld within a society or group.

Policy and Ethical Debate

involves discussions that examine the moral implications and practical effects of public policies, weighing considerations of justice, fairness, and societal benefit.