How Should a Liability That Has an Unlikely Chance of Occurring

question 60

Multiple Choice

How should a liability that has an unlikely chance of occurring and is insignificant in size be disclosed?

• A)No Yes
• B)No No
• C)Yes No
• D)Yes Yes

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Definitions:

Services Rendered

Work or services provided by a business or individual, typically in exchange for payment.

Cash Payments Journal

A financial accounting journal used to record all transactions that result in cash payments, including operating expenses, asset purchases, and debt repayments.

Employees' Salaries

Fixed payments made to employees for their services over a specific period, not immediately influenced by changes in business activity levels.

Accrued Salaries

This refers to wages that have been earned by employees but have not yet been paid by the company.