Which of the Following Is Correct with Respect to a Contingent

question 57

Multiple Choice

Which of the following is correct with respect to a contingent liability that is "reasonably possible" but "cannot reasonably be estimated"?

• A) It must be recorded and reported as a liability.
• B) It does not need to be recorded or reported as a liability.
• C) It must be reported as a liability, but not recorded.
• D) It must only be disclosed as a note to the financial statements.

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Definitions:

Milliseconds

A unit of time equal to one thousandth of a second, commonly used to measure the timing of very quick events.

Characters

The people or beings in a story, play, or other literary work who carry out the action and dialogue, contributing to the work's plot and theme.

Jerky Movements

Rapid, sharp actions or motions that are not smooth, often involuntary and without a steady rhythm.

Scanning

The process of systematically looking over a wide area or examining information carefully in search of something specific.