A Contingency Liability That Is Remote

question 113

Multiple Choice

A contingency liability that is remote

• A) should be disclosed in the financial statements.
• B) must be accrued as a loss.
• C) does not need to be disclosed.
• D) is recorded as a contingent liability.

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Definitions:

Farming

The practice of cultivating the land and raising livestock to produce food and other agricultural products.

Gold

A yellow precious metal used for coinage, jewelry, and other arts, also valued as a financial investment.

Feme Sole

A legal term from English law referring to a single woman, including those who were widowed or divorced, who had legal rights to own property and conduct business in her own name.