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.

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Definitions:

Legal-Political Conditions

The legal and governmental framework within which individuals, organizations, and businesses operate, including laws, regulations, and political climate.

Patent Attorney

A legal professional specialized in intellectual property law, specifically in securing and protecting patent rights for inventions and designs.

Environmental Uncertainty

The degree of unpredictability and complexity in an organization's external environment, affecting decision-making and strategic planning.

Complexity

The state or quality of having multiple interrelated parts, leading to difficulty in understanding, analysis, or resolution.