Which of the Following Is the Proper Way to Report

question 47

Multiple Choice

Which of the following is the proper way to report a probable contingent asset?

• A)As an accrued amount.
• B)As deferred revenue.
• C)As an account receivable with additional disclosure explaining the nature of the contingency.
• D)As a disclosure only.

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Definitions:

Free Recall

A process in memory recall where information is retrieved without being cued, recalling events or facts spontaneously.

Serial Recall

The process of recalling items or events in the order in which they occurred or were presented.

Savings

Monetary funds that are set aside or stored for future use or emergencies, typically earning interest in a financial institution.

Recognition

The cognitive process of identifying previously encountered objects, events, or people, indicating the ability to remember them.