Which of the Following Contingent Losses Would Require Footnote Disclosure

question 20

Multiple Choice

Which of the following contingent losses would require footnote disclosure only?

• A)A likely loss with an amount that can be reasonably estimated
• B)A likely loss of a known amount
• C)An unlikely loss
• D)A likely loss with an amount that cannot be reasonably estimated

---

Definitions:

Competing Proposals

Proposals or bids from different entities aimed at securing a contract or project, often requiring evaluation to select the most advantageous.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Net Present Value

The discrepancy between the current worth of cash coming in and the worth of cash going out over a certain timeframe, utilized in capital budgeting to evaluate an investment's profitability.

Residual Value

This refers to the estimated value of an asset at the end of its useful life.