A Contingent Liability Is Recorded in the Accounting Records

question 54

Multiple Choice

A contingent liability is recorded in the accounting records

• A) if it will possibly become an actual liability, and the exact amount is unknown.
• B) if the contingency has not already been disclosed in the notes to the financial statements.
• C) under no circumstances.
• D) if a reasonable estimate of the expected loss can be determined and if it is probable.

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Definitions:

Networking

The act of building and maintaining professional relationships to exchange information, advice, and support.

Trust

The confidence or belief in the integrity, reliability, and fairness of a person or system.

Six Degrees

The idea that all people are six, or fewer, social connections away from each other, also known as "six degrees of separation."

Secondary Network

A supplementary or backup network providing additional pathways for communication or data transfer in case the primary network fails.