Gain Contingencies, Which Are Significant and Likely and Can Be

question 109

Multiple Choice

Gain contingencies, which are significant and likely and can be reasonably estimated:

• A)should be disclosed in a note to the financial statements.
• B)should be reported 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 until the gain is realized.

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Definitions:

Explain

To make (an idea, situation, or problem) clear to someone by describing it in more detail or revealing relevant facts.

Denial Response

A reaction strategy where an individual or organization refuses to accept responsibility or the truth of a situation, often in a defensive manner.

Prospect's Objection

Any question or concern raised by a potential buyer that indicates hesitance or opposition to the product or sales offer.

Erroneous Information

Information that is incorrect, misleading, or based on errors.