A Contingent Liability

question 54

Multiple Choice

A contingent liability

• A)is definite in existence, but its amount and due date are not yet known.
• B)has the same requirements as a contingent gain.
• C)must be accrued even when it is not reasonably estimable.
• D)is disclosed only in the financial statement notes if highly probable and the amount can be estimated.

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Definitions:

Relative Deprivation Theory

The hypothesis that individuals or groups who perceive themselves as being disadvantaged compared to others may experience feelings of anger or resentment.

Social Stratification

The division of society into groups arranged in a social hierarchy.

Shriners

A fraternal organization known for its philanthropy, particularly for supporting Shriners Hospitals for Children.

Masonic Principles

Fundamental values and beliefs guiding the members of the Freemasonry fraternity, including brotherly love, relief, and truth.