A Contingent Liability Is Recorded When the Likelihood of the Contingency

question 77

Multiple Choice

A contingent liability is recorded when the likelihood of the contingency is

• A) remote.
• B) reasonably possible.
• C) probable.
• D) nil or zero.

---

Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Unanimous Decision

An agreement on a course of action or decision by all parties or members involved without any dissent.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.

Bay Of Pigs

The site of a failed military invasion of Cuba in 1961 by Cuban exiles backed by the U.S. government aiming to overthrow Fidel Castro.