A Contingency That Is Remote

question 218

Multiple Choice

A contingency that is remote

• A) should be disclosed in the financial statements.
• B) must be accrued as a loss.
• C) does not need to be disclosed.
• D) is recorded as a contingent liability.

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Definitions:

Instinctive Drives

Innate impulses that motivate individuals to perform certain actions essential for survival, such as eating and reproducing.

Socially Unacceptable

Behaviors or actions that are generally considered offensive, inappropriate, or not in line with societal norms and values.

Acceptance

Agreeing verbally or in writing to the terms of a contract, which is one of the requirements of an enforceable contract.

Grief

A deep and poignant emotional pain or distress caused by loss, especially of a loved one.