Which of the Following Is the Proper Way to Report

question 68

Multiple Choice

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

• A)As an asset.
• B)As deferred revenue.
• C)As a disclosure only.
• D)No disclosure or accrual required.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.