Onopea Inc

question 37

Multiple Choice

Onopea Inc. considered two contingencies at the end of 2016: ** a probable loss in the range of $200,000 to $800,000
** a reasonably possible loss of $150,000
Under U.S. GAAP, what is the balance for contingent liabilities at the end of 2016?

• A) $200,000
• B) $500,000
• C) $350,000
• D) $650,000

---

Definitions:

Consumer Demands

The desire, willingness, and ability of consumers to purchase goods and services at various price levels.

Market System

A market mechanism where the allocation of resources for investment, production, and distribution is driven by the forces of supply and demand, with the pricing of goods and services set freely within the market.

Minimize Cost

The process of finding the most efficient level of production, where the combination of inputs results in the lowest possible cost.

Unit of Output

The basic measure of productivity or product which is generated by a production process, operation, or project.