How Should a Contingent Liability That Has a Likely Chance

question 14

Short Answer

How should a contingent liability that has a likely chance of occurring but the amount of the loss cannot be reasonably estimated be disclosed? $\begin{array}{lll}&\text { Accrual}&\text { Footnote }\\\hline\text { a. } & \text { No } & \text { No } \\\text { b. } & \text { Yes } & \text { Yes } \\\text { c. } & \text { Yes } & \text { No } \\\text { d. } & \text { No } & \text { Yes }\end{array}$

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Definitions:

Concepts Of Strategy

The foundational ideas and theories that underlie the planning and execution of strategies to achieve specific objectives.

Business Strategies

Broad plans and tactics used by companies to achieve specific goals and objectives and to secure a competitive position in the market.

Resource-Based View

A strategic management perspective that considers a firm's resources and capabilities as the primary sources of its competitive advantage.

Sustained Competitive Advantage

The ability of a firm to maintain a unique value proposition in the market that cannot be easily replicated by competitors, thus ensuring long-term success.