If a Loss Contingency Is Reasonably Possible or the Amount

question 89

Multiple Choice

If a loss contingency is reasonably possible or the amount cannot be reasonably estimated, _______.

• A)disclosure should occur in both the financial statements and the notes to the financial statements
• B)disclosure should occur in the financial statements only
• C)only a disclosure in the notes is required
• D)then no disclosure is required

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Definitions:

Reinforcers

Stimuli that increase the probability of a behavior being repeated.

Projective Test

A type of personality test in which the individual offers responses to ambiguous scenes, words, or images, revealing hidden emotions and internal conflicts.

Ambiguous Shapes

Visual stimuli that can be perceived or interpreted in more than one way.

Rorschach Test

A psychological test involving inkblots to analyze a person's personality traits and emotional functioning.