Which of the Following Contingencies Need Not Be Disclosed in the Financial

question 33

Multiple Choice

Which of the following contingencies need not be disclosed in the financial statements or the notes thereto?

• A)Probable losses not reasonably estimable
• B)Environmental liabilities that cannot be reasonably estimated
• C)Guarantees of indebtedness of others
• D)All of these must be disclosed.

---

Definitions:

Equity

The value of an ownership interest in a company, calculated as the company's assets minus its liabilities.

Debt

An amount of money borrowed by one party from another, usually with the condition of repayment with interest.

Put Contract

A financial contract granting the owner the privilege to sell a certain asset at a predetermined price during a set period.

Option Price

The amount paid for the option itself, representing the price to buy (call) or sell (put) an underlying asset by a specific date at a specified price.