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.

---

Definitions:

Representative

An individual chosen or elected to act and speak on behalf of a larger group, often in negotiating or legislative contexts.

Negotiations

The process of discussing terms and conditions between two or more parties with the aim to reach an agreement or compromise.

Authorization Card Campaign

A drive by a labor union to collect signed cards from employees indicating their interest in union representation, often as a preliminary step toward a unionization vote.

Majority Support

The condition in which more than half of a group favors a proposal or action, often used in the context of union representation votes.