Which of the Following Contingencies Should Be Accrued in the Accounts

question 48

Multiple Choice

Which of the following contingencies should be accrued in the accounts and reported in the financial statements?

• A)The estimated expenses of a one-year product warranty.
• B)An accommodation endorsement involving a remote loss.
• C)The company is forcefully contesting a personal injury suit and a loss is possible and reasonably estimable.
• D)It is probable that the company will receive $50,000 in settlement of a lawsuit.

---

Definitions:

Positive Feedback

A process in which the end products of an action cause more of that action to occur in a feedback loop.

Hypocalcemia

A medical condition characterized by abnormally low calcium levels in the blood, which can cause neurological issues.

Cardiac Arrhythmias

are irregular heartbeats that can be too fast, too slow, or erratic, disrupting normal heart rhythm and function.

Muscular Weakness

A decrease in the strength of one or more muscles, potentially affecting physical performance and daily activities.