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.

---

Definitions:

Land Resources

Natural resources encompassing geographical territories and the natural materials available within them, such as water, minerals, and fertile land used for agriculture.

Money

Anything that is generally accepted in exchange for goods and services.

Capital

Assets used for the production of goods and services, including machinery, buildings, and equipment.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.