Uncertainties Such as Natural Disasters Are

question 26

Multiple Choice

Uncertainties such as natural disasters are:

• A)Not contingent liabilities because they are future events not arising from past transactions or events.
• B)Contingent liabilities because they are future events arising from past transactions or events.
• C)Disclosed because of their usefulness to financial statements.
• D)Estimated liabilities because the amounts are uncertain.
• E)Reported in the same way as debt guarantees.

---

Definitions:

Accentuation Effect

The tendency to perceive differences between categories of objects or people as more pronounced than they actually are.

Vivid

Extremely clear, detailed, or lifelike in a way that captures the attention and imagination.

Negative Stereotypes

Oversimplified and universally applied beliefs about a particular group of people that are often demeaning or degrading.

Intergroup Conflict

A conflict that occurs between different groups or teams, often resulting from competition for resources, prejudice, or stereotypes.