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

question 40

Multiple Choice

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is probable 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:

Terms

Conditions and stipulations under which agreements and contracts are made, outlining the obligations of involved parties.

Mark-up

Additional pricing on goods’ cost aimed to cover running expenses and secure profit.

Cost

The amount of money required to purchase something or the expense incurred to produce something.

Selling Price

The amount for which a good or service is sold to the customer.