Which of the Following Statements Regarding Contingencies Is True

question 136

Multiple Choice

Which of the following statements regarding contingencies is true?

• A)Contingencies that are probable and estimable must be recorded before the outcome of future events.
• B)Contingent assets,if probable and estimable,are treated in much the same way as contingent liabilities.
• C)The accounting principle that determines whether a contingent asset is recorded is that of materiality.
• D)Contingencies that are not estimable should not be disclosed even if probable.

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Definitions:

Truth Values

The valuation in logic that shows the relation of a statement to the truth, typically classified as either true or false.

Truth Table

A mathematical table used in logic to determine the truth values of logical expressions based on their operators.

Atomic Sentences

Simple statements that cannot be broken down into smaller statements without losing meaning.

Truth Values

The valuation in logic that determines the truthfulness of a statement, typically classified as either True or False.