Which of the Following Items Would Not Be Identified If

question 44

Multiple Choice

Which of the following items would not be identified if a contingent liability were disclosed in a financial statement footnote?

• A) The nature of the item
• B) The expected outcome of the future event
• C) A numerical probability of the expected loss
• D) The amount of the contingency if known

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Definitions:

Real Thing

An authentic object or concept, as opposed to an imitation or reproduction.

Likert Scale

An interval scale on which respondents record their reactions to statements by checking their level of agreement between, for example, “strongly agree” and “strongly disagree.”

Ordinal

Scales with some measure of progression such as “Freshman, Sophomore, Junior, Senior.”

Interval

Generally, the distance between points on a scale. In research terms, interval refers to a scale in which there is an assumption of equal intervals between points on the scale.