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:

Argument By Anecdote

A method of argument where personal stories or anecdotes are used as evidence, often overlooking statistical or scientific evidence.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information.

Oversimplification

The reduction of a complex issue or situation to simplistic terms or concepts, which often leads to misunderstanding or misrepresentation.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.