Gain Contingencies That Are Remote and Can Be Reasonably Estimated

question 21

Multiple Choice

Gain contingencies that are remote and can be reasonably estimated

• A) must be disclosed in a note to the financial statements.
• B) may be disclosed in a note to the financial statements.
• C) must be reported in the body of the financial statements.
• D) should not be reported or disclosed.

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Definitions:

Logical Strength

The extent to which the premises of an argument support its conclusion, influencing its capacity to persuade or convince logically.

Sound Argument

An argument that is both valid (correctly structured so that the conclusion logically follows from the premises) and has all true premises.

Bandwagon Fallacy

A logical error that concludes something is true, good, or desirable because many other people agree with it or are doing it.

Argument Sound

A quality of an argument wherein it is both valid and its premises are true, leading to a correct conclusion.