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.

---

Definitions:

Permissive Parent

A parenting style characterized by low demands with high responsiveness, where parents are lenient and often only step in when there is a serious problem.

Authoritative Parent

A parenting style characterized by high responsiveness and high demands, focusing on setting clear rules and guidelines while also being supportive and nurturing towards the child.

Parenting Styles

The various approaches parents use in raising their children, typically categorized into authoritative, authoritarian, permissive, and uninvolved styles.

Flexibility

The capacity to adapt to new, different, or changing requirements and situations with ease.