Footnote Disclosure in the Financial Statement Is Necessary If the Contingent

question 81

Multiple Choice

Footnote disclosure in the financial statement is necessary if the contingent liability is:

• A) Remote.
• B) Probable.
• C) Reasonably possible.
• D) Has occurred.

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Definitions:

Industry Size

The overall scale or breadth of a sector, often measured by the number of firms, employees, or the volume of production.

Profits And Losses

The financial gains earned or losses incurred by a business over a specified period.

Economic Model

A simplified representation of economic processes, used to predict and analyze real-world economic behaviors.

Consumer Tastes

Preferences and inclinations of consumers regarding various goods and services, which can influence their purchasing decisions.