A Contingent Liability, Which Is Significant, Probable, and Can Be

question 4

Multiple Choice

A contingent liability, which is significant, probable, and can be reasonably estimated:

• A)should be disclosed in a note to the financial statements.
• B)should be reported as a provision in the body of the financial statements.
• C)may be reported in the body of the financial statements.
• D)should not be reported or disclosed.

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Definitions:

Instrumental

Pertaining to actions or tools designed to achieve a specific purpose or carry out a particular function.

Reactive

The tendency to respond to stimuli or situations in a manner dictated by the stimuli themselves rather than initiating proactive actions.

Temperamental Differences

Variations among individuals in their emotional and behavioral responses due to differing inborn temperaments.

Authoritative Parents

Parenting style characterized by high expectations, understanding, and support, balancing strict rules with emotional warmth and autonomy for the child.