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:

Efficient Manager

An individual who is effective at organizing resources and processes to achieve specific goals with minimum waste.

Partnership Funds

Resources or capital contributed by partners to a partnership for the purpose of its business.

Pro Rata Basis

A method of allocating amounts or resources proportionally, according to a specific rate, percentage, or share.

Titled To

The legal right to own, possess, or hold a particular property or position.