A Contingent Liability Is Recorded in the Accounting Records

question 125

Multiple Choice

A contingent liability is recorded in the accounting records

• A)if a reasonable estimate of the expected loss can be determined and if it is probable.
• B)if the contingency has not already been disclosed in the notes to the financial statements.
• C)if the amount can be estimated, but the possibility of occurrence is remote.
• D)under no circumstances.

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Definitions:

Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or federal law.

Gatekeepers

Individuals or institutions that control access to information, resources, or decision-making processes, often influencing which issues gain public attention or how information is disseminated.

Contributing Money

The act of donating funds to support a cause, campaign, organization, or individual, often used in the context of political campaigns and fundraising.

Political Campaigns

Organized efforts aiming to influence the decision-making process within a specific group, often seen in democracies to elect representatives or promote policy ideas.