A Contingent Liability

question 97

Multiple Choice

A contingent liability

• A) definitely exists as a liability but its amount and due date are indeterminable.
• B) is accrued even though not reasonably estimated.
• C) is not disclosed in the financial statements.
• D) is the result of a loss contingency.

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Definitions:

Hypochondriasis

A psychological disorder characterized by excessive preoccupation with the fear of having a serious illness, despite medical reassurance.

Bodily Sensations

Feelings or perceptions related to the physical condition or state of the body, often linked to the five senses.

Stomach Cancer

A disease characterized by the abnormal growth of cells in the lining of the stomach that can lead to serious health complications.

Conversion Disorder

A psychological condition in which emotional distress or unconscious conflict is expressed through physical symptoms without a medical cause.