Contingent Liabilities Whose Ultimate Payment Is Highly Probable and Can

question 52

Multiple Choice

Contingent liabilities whose ultimate payment is highly probable and can be reasonably estimated must be

• A)ignored until actual payment is made.
• B)disclosed only in the footnotes to the financial statements.
• C)recorded in the body of the balance sheet.
• D)disclosed in the auditor's report.

---

Definitions:

Unintentional Injury

Injuries that are unexpected and occur without deliberate intent to harm, often resulting from accidents.

Tuberculosis

Tuberculosis is a contagious bacterial infection caused by Mycobacterium tuberculosis, primarily affecting the lungs but can spread to other parts of the body.

Whooping Cough

An infectious bacterial disease characterized by severe coughing fits and a distinctive 'whooping' sound upon inhalation.

Accidental Deaths

Fatalities that occur without the intention to cause harm, often resulting from unforeseen or unplanned events.