Contingent Assets Need Not Be Disclosed in the Financial Statements

question 121

Multiple Choice

Contingent assets need not be disclosed in the financial statements or in the notes if they are:

• A) virtually certain to occur.
• B) probable to occur.
• C) likely to occur.
• D) possible but not probable to occur.

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Definitions:

Ideal Image

A person's conception of something in its absolute perfection or an entity's representation of itself or its products as perfect or near perfect.

Constraint Commitment

The commitment to a course of action or to another person based on a sense of obligation arising from constraints or limitations.

Moral Commitment

The dedication to act in accordance with one's ethical principles and values, even in the face of personal cost or challenge.

Personal Dedication

A person's commitment or strong belief in dedicating themselves to a cause or activity.