Under ASPE, a Contingency That Is Not Likely to Occur

question 109

Multiple Choice

Under ASPE, a contingency that is not likely to occur

• A) should be disclosed in the financial statements.
• B) must be accrued as a loss.
• C) does not need to be disclosed unless the loss would result in a substantial negative effect on the company's financial position.
• D) is recorded as a contingent loss.

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Definitions:

Rogue Access Point

An unauthorized access point to a wireless network, which can pose security risks.

Unauthorized

Refers to actions taken or access granted without official permission or approval.

Wireless Network

A type of computer network that uses radio waves rather than wires to transmit data between devices, enabling mobility and flexibility.

MUrgency App

A mobile application designed to connect individuals in need of emergency medical services with nearby responders quickly.