A Contingent Liability or Asset Whose Existence and Amount Has

question 53

Multiple Choice

A contingent liability or asset whose existence and amount has to be confirmed by some future event:

• 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:

Commission

A service charge assessed by a broker or investment advisor for investment activity, such as buying or selling securities.

Asset Allocation Funds

Mutual funds that aim to provide a balanced mix of investment assets within one portfolio, typically including stocks, bonds, and cash, based on specific investment strategies or objectives.

Market Sectors

Categories of stocks based on the type of business they are in, such as technology, healthcare, or finance.

Fund Manager

A Fund Manager is a professional responsible for making investment decisions and overseeing a portfolio of assets to achieve specified investment objectives.