Under ASPE, a Contingency That Is NOT Likely to Occur

question 33

Multiple Choice

Under ASPE, a contingency that is NOT likely to occur

• A) should be disclosed in the financial statements.
• B) must be accrued as a loss.
• C) does not need to be disclosed unless the loss would result in a substantial negative effect on the company's financial position.
• D) is recorded as a contingent loss.

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Definitions:

Stimulate Improvement

The act of encouraging or facilitating positive changes or developments, often through strategies or interventions aimed at enhancing performance or quality.

Combination Of Skills

The amalgamation of various abilities or competencies to achieve a particular goal or task.

Conflict

A disagreement, clash, or struggle that arises from differing needs, wishes, or demands between individuals or groups.

Team Settings

Environments or contexts where groups of people work collaboratively towards common goals.