Which of the Following Statements Concerning Contingencies Is True

question 36

Multiple Choice

Which of the following statements concerning contingencies is true?

• A) Contingent liabilities are always recorded in the body of the financial statements.
• B) Contingent liabilities are always disclosed in the footnotes to the financial statements.
• C) Contingent gains are sometimes recorded in the body of the financial statements.
• D) Contingent gains are sometimes disclosed in the footnotes to the financial statements.

Differentiate between circular runout and total runout.

Explain the significance of datum features in runout measurement.

Describe how runout tolerances affect manufacturing and quality assurance processes.

Understand the graphical representation of runout tolerances on engineering drawings.

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Definitions:

Demand Curve

An illustrative depiction that demonstrates the connection between a product's price and the amount consumers are willing to purchase at various price levels.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to changes in price.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and capable of spending on a product or service and the actual total sum they end up paying.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product, service, or resource, usually set below the market equilibrium price to make goods more affordable.