A Contingency That Is Remote

question 218

Multiple Choice

A contingency that is remote

• A) should be disclosed in the financial statements.
• B) must be accrued as a loss.
• C) does not need to be disclosed.
• D) is recorded as a contingent liability.

---

Definitions:

Monthly Payments

Payments made once a month, often as part of a loan or rental agreement.

Borrow

To receive something of value with the promise to return it or its equivalent value at a later date.

Compounded Semi-Annually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest on interest.

Monthly Contributions

Regular payments made into a financial scheme, savings, or investment plan every month.