Use the Following Key (A-D) to Identify the Proper Treatment

question 2

Multiple Choice

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible and amount is estimable

• A)Record only
• B)Record and disclose
• C)Disclose only
• D)Do not record or disclose

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Definitions:

Conglomerate Merger

A type of business combination where two or more corporations in completely unrelated industries combine.

Money Lending

The act of giving money to another party in exchange for future repayment of the principal amount along with interest or other charges.

Province

An administrative division within a country, often with its own local government.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specific sum of money to a third party on demand or at a set time.