If a Company Can Determine a Reasonable Estimate of an Expected

question 74

Multiple Choice

If a company can determine a reasonable estimate of an expected loss from a lawsuit and it is probable it will lose the suit, it should

• A)disclose the basic facts regarding the suit in the notes to its financial statements.
• B)accrue the loss.
• C)neither disclose in the notes nor accrue the loss.
• D)pay the amount estimated.

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Definitions:

PIPEDA

The Personal Information Protection and Electronic Documents Act, a Canadian law that governs how private sector organizations collect, use, and disclose personal information in the course of commercial business.

Judicial Approval

The official acceptance or endorsement of a legal process or decision by a court of law.

Video Surveillance

The use of video cameras to monitor activities in a particular area, often for security purposes.

GPS Tracking

The use of Global Positioning System technology to ascertain the precise location of a person, vehicle, or other asset to which it is attached.