If an Event Makes It Probable That a Company Will

question 92

Multiple Choice

If an event makes it probable that a company will experience a cash outflow but it cannot reasonably estimate the amount, the contingent liability

• A) should be recorded in the accounts.
• B) should be disclosed in the notes to the financial statements.
• C) should not be recorded or disclosed in the notes until the contingency actually happens.
• D) must be paid for the amount estimated.

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Definitions:

Constructive Coping

Strategies that are adaptive and help in managing or overcoming stress and its effects in a positive manner.

Burnout

A state of physical, emotional, and mental exhaustion caused by long-term involvement in situations that are emotionally demanding.

Burnout

A state of physical, emotional, and mental exhaustion caused by long-term involvement in emotionally demanding situations.

Post-traumatic Stress Disorder

Post-traumatic Stress Disorder is a mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.