A Contingent Liability That Is Likely and Can Be Reasonably

question 25

Multiple Choice

A contingent liability that is likely and can be reasonably estimated should be:

• A)disclosed in a note to the financial statements.
• B)accrued with a journal entry.
• C)either disclosed in a note or accrued with a journal entry.
• D)ignored until the liability materializes.

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Definitions:

Project Allegiance

A commitment or loyalty to a particular project, often leading to increased motivation and effort towards its successful completion.

Work Group

A collection of individuals who come together to achieve a specific goal or perform a set of tasks, usually within an organizational setting.

Age Discrimination

Age discrimination involves treating an individual or group unfairly based on their age, often observed in employment practices.

Employment Act

A piece of legislation designed to regulate employment conditions, including wages, working hours, and workplace safety.