Use the Following Key (A-D) to Identify the Proper Treatment

question 61

Multiple Choice

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible but amount is not estimable

• A)Record only
• B)Record and disclose
• C)Disclose only
• D)Do not record or disclose

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Definitions:

Delegatee's Performance

The execution of delegated tasks or duties by the appointed individual or entity.

Special Trust

A fiduciary relationship or arrangement in which one party holds property or assets for the benefit of another party, marked by a particular purpose or objective.

Intended Beneficiary

A person or entity that is specifically designated to benefit from a contract, trust, or estate, even though they are not a direct party to the agreement.

Lenders Bank

A financial institution that provides loans to individuals or entities and expects to be repaid with interest.