If a Potential Loss on a Contingent Liability Is Probable

question 26

Multiple Choice

If a potential loss on a contingent liability is probable and amount of the loss can be reasonably estimated, the liability should be:

• A) included in the financial statements as an actual liability.
• B) disclosed in the auditor's report but not disclosed on the financial statements.
• C) disclosed in footnotes but not accrued.
• D) neither reported nor disclosed in footnotes.

---

Definitions:

Access Table

A data storage structure in Microsoft Access designed to hold data in rows and columns for easy organization and retrieval.

Layout

Layout refers to the arrangement of elements on a page or screen, including text, images, and controls, often aimed at achieving a specific design or user experience goal.

PDF File

A Portable Document Format file, a universal file format developed by Adobe that preserves the fonts, images, graphics, and layout of any source document, regardless of the application or platform used to create it.

Form Data

Information entered into web forms by users, often submitted to the server for processing or storage.