Which of the Following Is Not a Factor That Is

question 20

Multiple Choice

Which of the following is not a factor that is considered when evaluating whether or not to record a liability for pending litigation?

• A) Time period in which the underlying cause of action occurred.
• B) The type of litigation involved.
• C) The probability of an unfavorable outcome.
• D) The ability to make a reasonable estimate of the amount of the loss.

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Definitions:

Days' Sales Uncollected

Measures the average amount of time it takes a company to collect cash from credit sales.