Under ASPE, a Contingent Liability Must Be Accrued in the Financial

question 81

Multiple Choice

Under ASPE, a contingent liability must be accrued in the financial statements if

• A) it can be reasonably estimated and is unlikely to occur.
• B) it can be reasonably estimated and is likely to occur.
• C) it is likely to occur but cannot be reasonably estimated.
• D) the amount of the potential loss is greater than the balance in the cash account.

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Definitions:

Male Chauvinism

An attitude of superiority and entitlement held by some men towards women, often manifesting in discrimination and bias.

Prejudice

Preconceived opinion or bias against a person or group without sufficient knowledge, rational reason, or actual experience.

Sexual Variations

Refers to the diverse range of sexual practices, preferences, and identities beyond traditional norms and expectations.

Socially Approved

Refers to behaviors or practices that are accepted and endorsed by society or a specific community as appropriate or desirable.