A Contingent Liability That Has a Remote Chance of Occurrence

question 53

Multiple Choice

A contingent liability that has a remote chance of occurrence and an uncertain amount 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:

Charting By Exception

A documentation method where only deviations from predefined norms are recorded.

Narrative Section

A component of a document or report that provides a detailed description or storytelling of events and circumstances.

Pain Level

A subjective measure of the intensity of one's pain, often used in medical assessments to gauge discomfort or suffering.

Unauthorized Use

Utilization of something without official or legitimate permission.