A Contingent Liability Need Only Be Disclosed in the Financial

question 76

Multiple Choice

A contingent liability need only be disclosed in the financial statement notes when the likelihood of the contingency is

• A) reasonably possible.
• B) probable.
• C) remote.
• D) unlikely.

---

Definitions:

Internal

Pertaining to or occurring within an organization or entity.

Restraining Forces

Forces that counteract change in an organization by maintaining the status quo.

Driving Forces

Powerful influences or motivations that propel an individual, group, or organization towards achieving goals or initiating change.

Unfreezing

The initial phase in the change process where existing behaviors, attitudes, or norms are challenged or questioned in preparation for change.